Opinion

CAGW’s Cancerous Pharma Whitewash

Mytheos Holt Policy Analyst
Font Size:

Normally, conservatives don’t give cover to the very people who have gone out of their way to rig the U.S. healthcare system in their favor at the expense of consumers, taxpayers, and everyone in-between. Especially when that same industry makes up Hillary Clinton’s most enthusiastic donors. And especially when they are trying to kill a program supported by a Republican President.

Unfortunately, in the case of the usually sound Citizens Against Government Waste (CAGW), it appears there is a first time for everything. CAGW has, for questionable reasons known only to itself, been trying to offer cover even to the pharmaceutical industry’s most egregious actions for a while. But it was only late last month when they took one of pharma’s dearest causes and tried to package it with the most hilariously backward argument yet offered. That is to say, CAGW joined the industry in trying to put limits on the 340B drug discount program by claiming it makes cancer care more expensive.

For anyone who knows anything about 340B, and the grounds for the industry’s opposition to it, this is an argument worthy of the Onion, not a serious conservative organization. To quickly bring readers up to speed, 340B is a program signed into law by President George H.W. Bush, which mandates that any pharmaceutical company doing business with Medicaid and Medicare Part B also sell drugs at a discount to hospitals that help mostly poorer or vulnerable populations. It has the advantage of being an entirely voluntary regulation, which companies need only obey if they want access to one of the largest stores of taxpayer dollars in the U.S., and costs taxpayers nothing.

You see, instead of an actual example of government waste – like a subsidy – 340B, as one of the program’s creators notes, is designed to be self-funding. Specifically, the program was designed to give financial support to hospitals that otherwise are constantly teetering on the brink of bankruptcy. In other words, it’s a model of conservative legislation that still helps the disadvantaged without wasting taxpayer money or offering across-the-board mandates. It’s simply a condition for doing business with the federal government.

So naturally, the corporate welfare-guzzling pharmaceutical industry hates it, mostly because  it prevents them from gouging poor patients for otherwise profitable treatments. And just coincidentally, the treatments whose prices Big Pharma has been hiking most consistently are – ding ding ding – cancer treatments.

CAGW conveniently regurgitates several industry-funded studies to show that cancer care costs more in the hospital setting than in private oncologist offices. Well, duh. Hospitals offer far more services and face much higher regulation. And let’s remember what else hospitals do: They treat the poor patients dumped on them by private oncologists who don’t want to deal with them. The group also somehow ignores the most powerful driver of rising costs in cancer care: drug prices.

Never mind that if 340B were repealed, such high prices would be absolutely inescapable, because nothing would stand in the way of the pharmaceutical industry imposing them on literally every treatment center in the country. Ignore the fact that multiple hospitals would go out of business. Forget the fact that Medicaid would end up spending more money for the same treatments for poor patients – in other words, that taxpayers would be on the hook for more money, which you’d think an organization that’s “against government waste” would be concerned about.

No, ignore all of this, even though it trashes CAGW’s entire case, and consider this: Even if their argument were true, many more treatments than just cancer have their prices held in check by 340B. Destroying the program’s funding mechanism would almost certainly lead to hospital closures, resulting in either the aforementioned increased Medicaid costs (or, God forbid, an expansion of Obamacare), or simply in people dying in the streets. I know CAGW isn’t fond of taxpayer money being wasted, and I’m certain they don’t want people to die, even if they do sometimes seem to think dead people make great letter writers for Microsoft astroturf.

So why is CAGW siding with an industry that is indifferent to all of this? Perhaps a misguided belief that the free market is being harmed? Frankly, if CAGW wants to protect the free market, perhaps it should start with actual government waste that is squandered on Big Pharma, including the massive amounts of corporate welfare the industry receives, or the prohibitive regulations they use to keep out competition.

Those certainly seem far more pressing concerns to this citizen against government waste than a minor Republican reform with no price tag.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel