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Category: Devon Herrick

How Much Innovation is Too Much Innovation?

Posted on May 15, 2025 by Devon Herrick

This is a happy story about a baby saved from death and disability caused by developmental delays. This type of technology could really transform health care, but at a huge cost. The baby was an inpatient in the hospital for nine months to control rising ammonia levels due to the genetic defect. The lead researchers collaborated with others to develop the technique that would be used to edit the precise gene that was lacking or malfunctioning. The race to develop the custom gene editing therapy was a herculean effort involving teams from numerous institutions. 

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Trump Unlikely to Lower Drug Prices by Making Rich Countries Pay More

Posted on May 13, 2025 by Devon Herrick

Drugs cost more in the United States for a variety of reasons, the primary of which is that the U.S. has almost no price controls. Other countries, such as Canada, the United Kingdom and much of Europe places ceilings on the prices charged in their respective countries. Critics often claim that the U.S. bears the load for research & development, while other countries free ride paying little above marginal cost. Other countries do get a bargain.

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Trump Administration Should Not Defend a Biden-Era Mental Health Parity Regulation

Posted on May 12, 2025 by Devon Herrick

Today is the deadline for the Trump Administration to decide whether it should defend a Biden-era rule beefing up enforcement of mental health parity and addiction coverage. It should not bother. Mental health parity is a set of rules and regulations that require health plans to cover mental health treatments to the same level as it does for physical health. The original act dates back to 1996, while addiction equity of treatment was added in 2008. At its most basic, mental health parity requires health plans to cover mental health conditions to the same dollar limits as physical health care.

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Are Drug Middlemen to Blame for High Drug Prices?

Posted on May 9, 2025May 9, 2025 by Devon Herrick

Over the years I have worked on projects defending the role of drug middlemen, known as pharmacy benefit managers (PBMs). PBMs are essentially volume purchasers of drugs who manage drug benefits for insurers, Medicare, Medicaid, and health plans. PBMs negotiate deals with drug makers, wholesalers, and pharmacies. At least in theory, health plans benefit from the PBM’s buying power, getting most of the drug rebates and negotiated discounts PBMs arranged with drug makers.

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For many years, our health care blog was the only free enterprise health policy blog on the internet. Then, when the NCPA closed its doors, the health blog stopped as well.

During this five-year hiatus no one else has come forward to claim the space. So, my colleagues and I have decided to restart the blog in connection with the Goodman Institute. We invite you and others to use this forum to share your views.

John C. Goodman,

Visit www.goodmaninstitute.org

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