What's wrong with this picture, and why can't our politicians see what is obvious to most of us?
NY Times: Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices by about 9 percent, according to industry analysts. That will add more than $10 billion to
the nation’s drug bill.
Not only is the $8 billion savings negated, but drug makers decided to raise prices even higher, raking in the profits. Are they whining just for show?
Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.
A Harvard health economist, Joseph Newhouse, said he found a similar pattern of unusual price increases after Congress added drug benefits to Medicare a few years ago. Just as the program was taking effect in 2006, the drug industry raised prices by the widest margin in a half-dozen years.
So what does it all mean…?
And some critics say the surge in drug prices could change the dynamics of the entire 10-year deal. “It makes it much easier for the drug companies to pony up the $80 billion because they’ll be making more money,” said Steven D. Findlay, senior health care analyst with the advocacy group Consumers Union.
This is a no brainier Democrats. What are you going to do about it?
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