Quote:
Originally posted by smooth
The traditional argument has been that the market would have provided an effective cost control--although, in this case, it isn't being allowed to work.
I say it will categorically be a boon to corps because they can charge as much as they like and suck the government's teet. Our seniors aren't allowed to buy the same drug across the border even if it's cheaper, the government is specifically restricted from bargaining for a group rate (which the rest of the population can currently do with a large enough plan), and any "talk" occurring has been one side trying to get it in to the bill but it's been rejected out of hand along party lines.
It's not too late to say that there is no mechanism to control spiraling drug costs. There isn't one. A company can choose to charge as much as it likes, can enforce its patent over the drug, has the law in its favor to restrict the power of market choices to drive down prices, and now effectively gets to stick the taxpayer with the bill. The only reason I can see a mechanism to prevent that situation wouldn't have passed is due to the bought and paid for (by the pharm. corps., not with citizen's votes) "representatives."
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How is the market being stopped from working? The bill provides benefits that currently under or uninsured seniors don't have. The lack of the bill doesn't have them in a stronger bargaining position, so I'm not clear on your argument here.
As far as being precluded from bargaining for drug prices, that's ridiculous. The thinking that the pharm companies can charge whatever they like is flawed. There are countless ways for pharmacies, insurance firms, and the government to get price breaks in the current system. I agree that collective bargaining for pharmaceuticals is effective. Government purchasers (like the VA) get some of the best prices for drug purchases. But, there is a growing inclination for PBMs (Pharmacy Benefit Managers) to work together to insist on lower prices and it will continue without regard to this plan. Those seniors who enter into the private market through this plan will benefit from this trend.
Price controls will do two things. First, it forces those countries without price controls to pay more for the rest of the world. Currently, it is the US drug buyer who is subsidizing low prices in the rest of the world. The price controls put in place in the rest of the world force the drug companies to make up there costs here. The second thing they will do is limit the number of new drugs researched and approved. There are limited resources for the expensive research and drawn out approval processes. Implementing price controls will force drug companies to put their resources behind only those that are most likely to be approved for big target markets. That will mean fewer dollars spent on niche diseases (MS, Parkinsons, etc).