Bad Santa – the drug companies give generously, and then take it away

Where do you suppose drug company executives stand on health care reform?

No, stop laughing, I’m serious.

You might be surprised to learn that drug makers have actually pitched in to lend a hand in the reform efforts. Recently, they made a surprising pledge to the Senate Finance Committee. If the legislation is passed, the companies will provide government and senior citizen rebates totaling $8 billion a year for 10 years.

That’s our $80 billion gift from the drug industry.

And if you like this image of a jolly, generous drug industry Santa Claus…read no further.

You didn’t really think there wouldn’t be a catch, did you?

Industry analysts report that wholesale prices of brand- name prescription drugs have jumped by about 9 percent over the past year. Consumers will pay around $10 billion more than they would have without the increases.

This marks the highest annual rate of drug price inflation in 17 years. And according to a pharmaceutical economic watchdog, costs of brand-name drugs used mostly by the Medicare population have gone up even more than 9 percent.

In the worst American economy since the great depression, drug company profits are expected to surpass $300 billion this year.

I guess there is one upside here. No taxpayer bailouts are necessary for THIS highflying industry.

To Your Good Health,

Jenny Thompson

Source:
“Drug Makers Raise Prices in Face of Health Care Reform” Duff Wilson, New York Times, 11/16/09, nytimes.com