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 toNot 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?
the nation’s drug bill.
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.So what does it all mean…?
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.
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?