What is the role of the government in setting drug prices?

The government plays an important role in setting drug prices in Washington. To ensure that drugs are safe and effective, the FDA reviews and approves the drugs prior to their release to the public. The government also works to ensure that drugs are priced fairly. The government has several policies in place to ensure that drug prices remain reasonable. First, the government limits the pricing power of monopoly-holders, such as drug companies that hold exclusive patents on certain drugs. The government also ensures that drugs remain affordable for those who need them most, by providing discounts and rebates for certain drugs. In addition, the government sets an upper limit, or cap, on how much drug companies can charge for certain drugs. This helps to keep costs down and ensure that drug companies do not make excessive profits. The government also regulates the marketing of drugs, so that drug companies do not use deceptive practices or engage in price gouging. Finally, the government can also help to lower drug costs through programs such as Medicaid and Medicare. These programs provide financial assistance to help those who cannot afford needed medications. By doing this, the government ensures that drugs remain affordable and accessible to those who need them most.

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