Should the government play a role in setting the price of prescription drugs in our country? To some degree it's already happening for some Medicare recipients beginning in 2026. But that involvement is not guaranteed to last and it is very much contingent on the outcome of this election.
Lawmakers are set to scrutinize the high cost of weight loss and diabetes drugs, which depending upon your insurance can range from $0 a month to over $1,000 if it isn't covered.
The high cost of prescription drugs in this country is not a new story. In 2022, the annual cost of prescription medications was about $1,400 per person, according to a survey from Rand Health Care.
Current law already caps the price of insulin at $35 a month for Medicare recipients. Beginning in 2026 select drug prices for those on Medicare will be negotiated by the federal government.
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But should the government play an even larger role? On Tuesday the CEO of Novo Nordisk, the maker of popular diabetes and weight loss drugs Ozempic and Wegovy, goes before the Senate Health Committee.
A report produced by that committee earlier this year found the company was charging Americans with Type 2 diabetes $969 a month for Ozempic, while the same exact drug can be purchased for just $59 in Germany.
That same report found that the obesity fighting drug Wegovy goes for $1,349 in the U.S. compared to $140 in Germany.
Norvo Nordisk tells Scripps News that Ozempic and Wegovy's price have declined since they were introduced and says it will continue to cooperate with policymakers on real solutions.
Vermont Sen. Bernie Sanders previewed his high-profile hearing last week, where government involvement in price setting is a controversial topic on Capitol Hill.
Kentucky Sen. Mitch McConnell, who leads Republicans in the Senate, has been one of the most vocal opponents of government involvement, arguing that if drug companies lose the incentive to have big profits, they may stop the financially risky development of new drugs.
"When the federal government predetermines outcomes, it kills incentives that prompt innovators to bet big on cutting edge research and development," said McConnell.
The reality is that any change in the government's role with the prices of prescription drugs going forward will depend on the outcome of the election.
Experts say if one party has control of the White House, Senate, and House of Representatives, that would increase the chances of new laws being passed or current laws being repealed.
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