Tuesday, February 11, 2025
Monday, March 08, 2021
Column: SB734 is a prescription for lower-quality care
Price Controls Are Bad Medicine for Vulnerable Americans
by Naomi Lopez and Rafael Fonseca, MD
Senate Bill 734 would establish price controls on cutting-edge drug treatments, making it illegal for any health plan to purchase drug treatments where the price exceeded a government-determined reference price. This would apply to state government programs, as well as all private employer-sponsored health plans that cover Oklahomans. These price controls would be based on drug prices found in Canada, a country that explicitly rations care under its socialized medicine system to keep costs down. Put simply, that system is an innovation-killer — and should Senate Bill 734 become law, Oklahomans will be getting a prescription for lower-quality care.
While it may sound appealing to reduce the cost of prescription drug treatments, this proposal would be doing so at the expense of access to the newest, most effective drug treatments. In Canada, a new treatment cannot be sold for more than other drugs in the same therapeutic class, even if it results in better health care outcomes or avoids other costly interventions like surgery and hospitalization. That means that access to the newest treatments are often delayed for Canadian patients by months or, in some cases, years.
Thursday, November 15, 2018
1889 Institute, Goldwater Institute publish alternative to occupational licensing
In their new report, A Win-Win for Consumers and Professionals Alike: An Alternative to Occupational Licensing, Byron Schlomach, director of the Oklahoma-based 1889 Institute, and the Goldwater Institute’s Christina Sandefur and Dr. Murray Feldstein explain that private certification would produce information benefits for consumers and service providers without the existing government monopoly on licensing.
“If you’ve ever used Yelp to find a good restaurant, or Angie’s List to find a good plumber, then you know how important it can be to get accurate information about sellers and products. Occupational licensing is supposed to provide that—a confirmation that the seller will provide a reliable product or service—but that often doesn’t happen without other costs, like reduced supply, higher prices, and compromised quality,” Schlomach said.
The paper proposes private certification as an alternate solution to government licensing. Private certification provides the best of all worlds: It protects consumers from fraud, encourages the creation of reliable sources of shorthand information to help both professionals and consumers, and it gives privately certified sellers the incentive to keep their quality high in order to keeps their certification credible.
A model bill included in the paper offers a voluntary system to complement the existing traditional occupational licensing process. It would allow private certifying organizations to register with the state, privately certify individuals to practice an occupation according to the organization’s practices, and employ modern technology, including consumer-rating systems using smartphone applications, to protect consumers. Such a system would create an element of competition, allowing certifying organizations to vie to provide the highest-quality credential.
The paper can be found here, with additional work on occupational licensing here.