This summer, we learned that Billy Tauzin, the former Louisiana Congressman who everyone knows is the chief lobbyist for the pharmaceutical industry, got a sweetheart deal for drug makers in the Senate's reform bill.
Then, drug makers started raising prices anyway.
Today's NY Times says enough already.
The deal has to go:
Then, drug makers started raising prices anyway.
Today's NY Times says enough already.
The deal has to go:
Now come the price increases. As Duff Wilson reported in The Times on Monday, the industry has raised the wholesale prices of prescription drugs by about 9 percent in the past year. That appears to be the highest annual increase since 1992.
The industry contends that it must raise prices to finance research on new drugs, and that may hold some truth given the dearth of promising new drugs in the pipelines of major manufacturers. But the increases also look designed to establish a higher price base before reform bills, if passed, try to reduce drug spending.
The industry’s maneuver suggests that the Senate’s deal with the industry should be abandoned in favor of the much tougher demands in the reform bill passed by the House. The House bill requires rebates and discounts from drug makers that may save the government about $150 billion over 10 years, according to the chief actuary for the Center for Medicare and Medicaid Services. The House bill also authorizes the secretary of health and human services to negotiate with the companies to obtain lower prices for drugs sold to Medicare beneficiaries and to a new public plan if one is approved.
The government needs every penny it can get to help cover the uninsured. Given the industry’s last-minute price increases, it seems prudent to ignore the supposed deal and demand a greater contribution.
The deal never should have been cut in the first place. It has to go.
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