Consumer Choice Center Joins Coalition Opposed To Most Favored Nation Drug Pricing Proposal

Dear President Trump:

On behalf of the undersigned federal and state-based organizations, we write to express our grave concerns with the “most favored nation” (MFN) executive order to impose foreign price controls on American medicines.

This proposal will impose an “International Pricing Index” on drugs in Medicare Part B, tying the U.S. prices for these medicines to the prices in foreign countries, most of which have government-set prices established in socialized medicine systems.

Adopting these price controls will slow medical innovation, threaten American jobs, and undermine criticism of single-payer systems. In addition, a United States embrace of price controls will make it immeasurably more difficult to get foreign countries to pay their own way in the development of new medicines.

Your administration has repeatedly stood strong against a government-takeover of healthcare. In fact, in your 2020 State of the Union Address, you promised that “we will never let socialism destroy American health care.”

We applaud your strong stance – socialized healthcare policies proposed by some leading presidential candidates would require trillions of dollars in tax increases, would destroy medical progress, and would end healthcare plans used by 180 million Americans.

Unfortunately, an MFN policy would adopt the same socialist healthcare policies that you have promised to fight against.

Not only does this undermine the broader effort to fight against the government takeover of health care, it will also have disastrous consequences to the economy and healthcare system.

The U.S. is the best in the world when it comes to developing innovative, lifesaving and life preserving medicines. Because of this, the U.S. is leading the way when it comes to developing COVID-19 vaccines, with several promising candidates entering the final stages of testing and clinical trials.

In contrast, foreign countries have been free riding off this American medical innovation for decades through crushing price controls and other market-distorting government rules and regulations.

Adopting foreign price controls will result in the same negative outcomes to our healthcare system as those overseas—less medical innovation leading to fewer cures and healthcare shortages for American patients.

Adopting price controls through an MFN will also harm the U.S. economy because of a decline in American research and development. Medical innovation directly or indirectly supports 4 million jobs and $1.1 trillion in total economic impact, which will be threatened by importing price controls.

An MFN does nothing to fight foreign free riding of American innovation. Although supporters of MFN have claimed the concept will incentivize manufacturers to negotiate better deals, this theory is based on the flawed assumption that American manufacturers were not fighting as hard as they could against foreign price controls in past years. In addition, an American adoption of these same policies renders any future criticism of them incredibly challenging.

Moving forward, we need policies that further encourage American innovation through tax and trade policies, such as renegotiated trade deals, a competitive business tax system and a more competitive environment.

As President, you have championed vital changes in tax and regulatory policies that have allowed free market innovation to flourish. We believe a market-based approach like those that your administration has consistently supported in other policy areas will lead to economic growth and promising new treatments but adopting price controls through the MFN plan would undermine rather than build on those successes. In short, if the MFN executive order is implemented it will have disastrous consequences for both American healthcare and the American economy.

Sincerely,

Grover Norquist
President, Americans for Tax Reform

Saulius “Saul” Anuzis
President, 60 Plus Association

Jim Martin
Founder/Chairman, 60 Plus
Association

Marty Connors
Leader, Alabama Center-Right
Coalition

Bethany Marcum
Executive Director, Alaska Policy
Forum

Phil Kerpen
President, American Commitment

Daniel Schneider
Executive Director, American
Conservative Union

Dee Stewart
President, Americans for a
Balanced Budget

Richard Manning
President, Americans for Limited
Government

Brent Wm. Gardner
Chief Government Affairs Officer,
Americans for Prosperity

Lisa B. Nelson
CEO, ALEC

Michael Bowman
President, ALEC Action

Kevin Waterman
Chair, Annapolis Center-Right
Coalition Meeting (Maryland)

Robert Alt
President and CEO, The Buckeye Institute

Rabbi Aryeh Spero
President, Caucus for America

Ryan Ellis
President, Center for a Free Economy

Andrew F. Quinlan
President, Center for Freedom and Prosperity

Jeffrey Mazzella
President, Center for Individual Freedom

Ginevra Joyce-Myers
Executive Director, Center for Innovation and Free Enterprise

Peter Pitts
President, Center for Medicine in the Public Interest

John Hinderaker
President, Center of the American Experiment

Thomas Schatz
President, Citizens Against Government Waste

Leo Knepper
CEO, Citizens Alliance of Pennsylvania

Donald Bryson
President & CEO, Civitas Institute

Regina Thomson
President, Colorado Issues Coalition

Gregory Conko
Senior Fellow, Competitive Enterprise Institute

James Edwards
Executive Director, Conservatives for Property Rights

Matthew Kandrach
President, Consumer Action for a Strong Economy

Fred Roeder
Health Economist/Managing Director, Consumer Choice Center

Yaël Ossowski
Deputy Director, Consumer Choice Center

Joel White
President, Council for Affordable Health Coverage

Katie McAuliffe
Executive Director, Digital Liberty

Robert Roper
President, Ethan Allen Institute

Adam Brandon
President, FreedomWorks

Annette Meeks
CEO, Freedom Foundation of Minnesota

George Landrith
President, Frontiers of Freedom

Grace Marie-Turner
President, Galen Institute
(organization listed for affiliation purposes only)

Ray Chadwick,
Chairman, Granite State Taxpayers

Naomi Lopez
Director of Healthcare Policy, Goldwater Institute

Mario H. Lopez
President, Hispanic Leadership Fund

Carrie Lukas
President, Independent Women’s Forum

Heather R. Higgins
CEO, Independent Women’s Voice

Andrew Langer
President, Institute for Liberty

Tom Giovanetti
President, Institute for Policy Innovation

Sal Nuzzo
Vice President of Policy, James Madison Institute

Amy Oliver Cooke
CEO, John Locke Foundation

Drew Cline
President, Josiah Bartlett Center for Public Policy

Seton Motley
President, Less Government

Jay Fisher
Immediate Past Chairman, Lisle Township Republican Organization

Doug McCullough
Director, Lone Star Policy Institute

Lindsay Killen
Vice President for Strategic Outreach, Mackinac Center for Public Policy

Brett Healy
President, The John K. MacIver Institute for Public Policy

Matt Gagnon
President, Maine Policy Institute

Charles Sauer
President, Market Institute

Dee Hodges
President, Maryland Taxpayers Association, Inc

Gene Clem
Spokesman, Michigan Tea Party Alliance

Jameson Taylor, Ph.D.
Vice President for Policy, Mississippi Center for Public Policy

Tim Jones
Chair, Missouri Center-Right Coalition
Fmr. Speaker, Missouri House

David A. Ridenour
President, National Center for Public Policy Research

Everett Wilkinson
Chairman, National Liberty Federation

Pete Sepp
President, National Taxpayers Union

John Tsarpalas
President, Nevada Policy Research Institute

Scott Pullins
Founder, Ohio Taxpayers Association

Doug Kellogg
Executive Director, Ohioans for Tax Reform

Sally Pipes
President and CEO, Pacific Research Institute

Ellen Weaver
President & CEO, Palmetto Promise Institute

Daniel Erspamer
Chief Executive Officer, Pelican Institute for Public Policy

Ed Martin
President, Phyllis Schlafly Eagles

Lorenzo Montanari
Executive Director, Property Rights Alliance

Stone Washington
Member, Project 21

Paul J. Gessing
President, Rio Grande Foundation

Bette Grande
President & CEO, Roughrider Policy Center

James L. Setterlund
Executive Director, Shareholder Advocacy Forum

Karen Kerrigan
President & CEO, Small Business & Entrepreneurship Council

Paul E. Vallely, Major General, US Army (ret)
Chairman, Stand Up America US Foundation

Richard Watson
Chair, Tallahassee Center-Right Coalition

David Williams
President, Taxpayers Protection Alliance

Sara Croom
Executive Director, Trade Alliance to Promote Prosperity

C. Preston Noell III
President, Tradition, Family, Property, Inc.

Lynn Taylor
President, Virginia Institute for Public Policy

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