One of the chief arguments made for public health care programs is that the government’s “vast buying power” can win bigger discounts from care providers than private programs. It sounds pretty good. But, as the great philosopher Cab Calloway said, “it ain’t necessarily so.” A recent article in the Denver Post chronicles a surprising outcome in a newly created state prescription drug program for low-income residents; people on the program are paying more for drugs than they would pay at many chain pharmacies. For those keeping score at home: Competition 1 “Vast Buying Power” 0
Michael Flynn is Director of Government Affairs for the Reason Foundation, a nonpartisan think tank whose mission is to advance a free society by developing, applying, and promoting libertarian principles, including individual liberty, free markets, and the rule of law.