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    ObamaCare: A sweetheart deal for the drug companies

    11/17/2009

    Last summer, the Obama Administration confirmed that it had come to an agreement with the pharmaceutical industry.  In closed door meetings, the industry pledged cost savings of $80 billion over the next 10 years.  In return, the administration agreed not to include overly burdensome regulations in healthcare reform legislation.  At the time, critics complained that the drug industry received a sweetheart deal:


    To an industry as big and profitable as the drug makers, giving up $80 billion over ten years wouldn’t seem like much of a sacrifice...


    More telling, however, is the disheartening--yet not surprising--revelation made by both Jonathan Cohn of the New Republic and Duff Wilson of the New York Times.  Faced with the prospects of health care reform, drug makers are raising prices.  Wilson writes:


    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 at the fastest rate in years.


    In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.


    Cohn argues that the pharmaceutical industry will actually benefit greatly from reform:


    Put [all of the reform efforts] together, and you have more demand for name-brand drugs. As a result... pharmaceutical companies would be able to raise their prices--enough to boost revenue significantly: "If this bill is implemented," the [IMS Health] report concludes on page 138, "an increase in prices on new drugs can be expected."


    ...revenues for the makers of name-brand drugs could grow by hundreds of billions of dollars over the next ten years.


    While on the campaign trail, President Obama endorsed certain reform efforts that would promote competition amongst drug companies and lower prescription drug costs for American families.  Reforms such as allowing the re-importation of drugs, increasing the use of generic drugs, and repealing the ban on direct negotiation of drug prices between Medicare and drug companies would help drive down costs and increase access for Americans.  Now, however, it seems as though he is going back on his word.  After making the closed door deal with drug makers, none of the promised reforms appear in Democrat proposed healthcare bills.  Instead, Democrat plans carry on the corporate welfare of the last administration-- which helped the pharmaceutical industry to take in billions-- and actually include provisions that will make drug companies even richer.


    This revelation is yet another reason to oppose the healthcare legislation being pushed through Congress.

    1 comments
    Robert Paxton
    05/07/2012

    Medicare and addiction? Do you usually consider these things as related? After the current passage of Obama's health care system reform, those using Medicare and additional government-sponsored systems may definitely be altered, however unless we definitely comprehend the substance-abuse-treatment-picture within those systems, we could not recognize simply precisely how significant the result will certainly be.

    <strong>Federal government sponsored substance abuse treatment</strong>

    A current research on substance abuse treatment services for folks by having Medicare located that those that were more youthful than 65, and by having a handicap or mental disorder, had a much greater prevalence of substance abuse. About 100,000 folks fit into this group.

    When it pertains to questioning health care reform, the senior are the ones that are most typically reviewed as being altered by the modifications in Medicare. Nonetheless, there is even a sizable population of individuals that are not aging however likewise count on the government-provided health care (like those on Medicaid for example).

    The majority of typically substance abuse treatment co-occurs by having psychological wellness ailments, specifically in the more youthful group obtaining Medicare services. 76 % of the more youthful applicants obtained substance abuse and psychological health services while for those over age 65, simply 54 % obtained both therapies. Nonetheless, placing these amounts into the broader image, just 1 % of the aging Medicare applicants have a key medical diagnosis of substance abuse while for the more youthful group that exact same classification represents 5.7 % of their age group.
    Just how the law will definitely influence substance abuse treatment

    Part of Obama's health care reform grows the volume of study carried out relating to Medicare/Medicaid customers and their service usage. This study will definitely concentrate on specialized healthcare providers, brand-new treatment techniques, in addition to payment choices to best suit all applicants. This might show to be incredibly advantageous, particularly for those looking for treatment for chronic drug abuse and addiction.

    By having the current passage in Congress of psychological wellness parity laws, the healthcare system's overhaul really should enable substance abuse treatment, such as <a href="http://www.non12step-drugrehabs.org/non12step-rehab-advantages.html">non 12 step rehabs</a>, and psychological health services to at last catch up with the others of the health-care globe. Americans will certainly be far more better off for it.