A new analysis for National Affairs by Michael F. Cannon shows that government “negotiation” pushes health care prices up, not down. For example, one study found that Medicaid increases private-sector drug prices 15%.

While critics say high health care prices are the result of free markets, the OECD reports that when it comes to government control of health spending, the United States is actually closer to communist Cuba than the average OECD nation.

Cannon notes recent studies show that when patients become price-sensitive, prices dropped by 11%-32% within two years – without anyone losing access to care.

The analysis challenges the conventional wisdom about what’s driving America’s health care crisis.

If you would like to speak with Cannon, please reach out to mmiller@​cato.​org.