In the News

Apr 14, 2016
REASON

Congress and Crony Capitalists Want to Take Over the Contact Lens Market

The intensity with which some American companies try to use the government to trick or deceive consumers is astonishing. Yet the extent to which lawmakers seem content to cater to these crony pursuits never disappoints, either. Case in point: the current attempt to protect contact lens sellers from competition at the expense of consumers.

An estimated 40 million Americans wear contact lenses. That’s a $4 billion industry. Thanks to the heavy-handed government regulation of all things health care, contacts already cost more than they should. However, if an ongoing effort to reduce competition through government cronyism were to succeed, costs might soon rise even more.

What makes the contact lens market unique—and also leaves it extra vulnerable to crony intervention—is the fact that customers are required by federal law to obtain a prescription from a licensed optometrist in order to purchase lenses. It is a rare instance where prescribers are also sellers, which leads to a cozy relationship between manufacturers and the doctors who can steer patients toward their brand.

Prescriptions are brand-specific. This makes it difficult for consumers to shop around. Choosing a different brand would require paying for another exam in order to obtain a new prescription.

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