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Uncle Joe

(58,483 posts)
Wed May 11, 2016, 07:41 PM May 2016

The attack on Bernie Sanders’ single-payer plan is 'ridiculous'



The Urban Institute and the Tax Policy Center have released an analysis of the costs of Bernie Sanders' domestic policy proposals, including single-payer national health insurance.They claim that proposals would raise the federal deficit by $18 trillion over the next decade.

We won't address all of the issues covered in these analyses, just single payer, Medicare-for-all. To put it bluntly, the estimates are ridiculous. They posit outlandish increases in the utilization of medical care, and ignore vast savings under single-payer reform, and ignore the extensive and well documented experience with single-payer systems in other nations — which all spend far less per person on health care than we do.


(snip)

1. Administrative savings - insurance:

(snip)

However, Sen. Sanders' proposal would exclude these for-profit insurers, and instead build on the traditional Medicare program, whose overhead is less than 3 percent. Moreover, even this 3-percent figure is probably too high, since Sanders' plan would simplify hospital payment by funding them through global budgets (similar to the way fire departments are paid), rather than the current patient-by-patient payments. Hence a more realistic estimate would assume that insurance overhead would drop to Canada's level of about 1.8 percent. Cutting insurance overhead to 2 percent (rather than the 6 percent that the analysis posits) would save an additional $1.7 trillion over the next 10 years.

2. Administrative savings - hospitals:

(snip)

These provider savings on paperwork would, in fact, be even larger than the savings on insurance overhead. At present, U.S. hospitals spend one-quarter of their total budgets on billing and administration, more than twice as much as hospitals spend in single-payer systems like Canada's or Scotland's. Similarly, U.S. physicians, who must bill hundreds of different insurance plans with varying payment and coverage rules, spend two to three times as much as our Canadian colleagues on billing.

Overall, these administrative savings for doctors and hospitals would amount to about $2.57 trillion over 10 year. Additional savings of more than $1.5 trillion from streamlined billing and administration would accrue to nursing homes, home-care agencies, ambulance companies, drug stores and other health care providers.


In total, the analysis underestimates administrative savings by about $6 trillion over 10 years.

3. Drug costs:

Reducing drug prices to the levels currently paid by European nations would save at least $1.1 trillion more over 10 years than the report posits.

4. Utilization of care:

(snip)

Moreover, no surge materialized when Medicare was implemented and millions of previously uninsured seniors got coverage. Between 1964 (before Medicare) and 1966 (the year when Medicare was fully functioning) there was absolutely no increase in the total number of doctor visit in the U.S.; Americans averaged 4.3 visits per person in 1964 and 4.3 visits per person in 1966. Instead, the number of visits by poor seniors went up, while the number of visits by healthy and wealthy patients went down slightly. The same thing happened in hospitals. There were no waiting lists, just a reduction in the utilization of unneeded elective care by wealthier patients, and the delivery of more care to sick people who needed it.

Rather than increasing national health spending, as the report claims, Sanders' plan (and the plan proposed by Physicians for a National Health Program) would almost certainly decrease total spending over the next 10 years.



http://www.cnbc.com/2016/05/11/the-attack-on-bernie-sanders-single-payer-plan-is-ridiculous-commentary.html

86 replies = new reply since forum marked as read
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The attack on Bernie Sanders’ single-payer plan is 'ridiculous' (Original Post) Uncle Joe May 2016 OP
Message auto-removed Name removed May 2016 #1
Welcome to D.U. Elephantpartyloses. Uncle Joe May 2016 #2
He lost the nomination, his proposals will go away with him. That makes it a moot point. Trust Buster May 2016 #3
Your post is factually incorrect. n/t Uncle Joe May 2016 #6
When Sanders exits stage left, so will his proposals. It's still a moot point. Trust Buster May 2016 #9
Post removed Post removed May 2016 #14
That wasn't nice. I merely said that a losing candidate's proposals retire with the candidate. Trust Buster May 2016 #20
Let us see if the alert-crazy Sanders people alert on their fellow Sanders fan's abusive post. Trust Buster May 2016 #22
What's abusive is Democrats promoting Republican policies... Human101948 May 2016 #25
I support the winning Democratic candidate. Kind of leaves you in the minority opinion. It's math. Trust Buster May 2016 #26
Post removed Post removed May 2016 #28
That's just your humble opinion. The majority of Democrats share my opinion. Trust Buster May 2016 #30
Agreed. CajunBlazer May 2016 #33
Only time will tell which candidate ends up "exiting stage left" and that time hasn't come yet. n/t Uncle Joe May 2016 #34
Yes it has. You may live in denial but that won't change the outcome. Trust Buster May 2016 #44
I live in the PRESENT, stating with absolute certainty that future events will unfold as if one Uncle Joe May 2016 #48
Not if one has a basic understanding of mathematics. Trust Buster May 2016 #50
Anyone that truly understands mathematics would know that the U.S. consists of 50 states, Uncle Joe May 2016 #53
So to will his voters, thus burning away the DNC's chances. n/t JPnoodleman May 2016 #85
Sanders, you can't even beat Clinton lunamagica May 2016 #4
Tell that to the people in the last two states to hold primaries, Indiana and West Virginia. n/t Uncle Joe May 2016 #7
Hillary beat Obama in 4 of the last 6 primaries. Do the math. Trust Buster May 2016 #11
I've done the math and to date Hillary doesn't have enough pledged delegates to get the nomination, Uncle Joe May 2016 #21
It will be over on the first ballot CajunBlazer May 2016 #35
Of course, you nor I know what the total pledged delegate count will be and this will Uncle Joe May 2016 #38
He is still three million of votes and hundreds of PDs behind lunamagica May 2016 #12
Hillary's vote lead is artificial, in many state primaries Independents couldn't vote Uncle Joe May 2016 #23
I remember when Sanders fans were whinning about Hillary winning... CajunBlazer May 2016 #37
I believe Bernie would be a much more competitive Democratic Nominee than Hillary. Uncle Joe May 2016 #39
Artificial? Artificial is being carried to "victory" by people who state they will vote lunamagica May 2016 #58
Artificial is the entropy inducing bubble that too much of the Democratic Party wishes to remain in. Uncle Joe May 2016 #60
I just checked... Agschmid May 2016 #69
That's correct and too many Hillary supporters wish to deny the remaining states the opportunity to Uncle Joe May 2016 #71
... You realize I am a Hillary supporter right? Agschmid May 2016 #72
Yes I knew that, I'm not aware of any posts wherein you called Bernie to Uncle Joe May 2016 #74
Cool. Agschmid May 2016 #75
He is doing one hell of a job considering he is fighting an uphill battle against a candidate rhett o rick May 2016 #10
It is no longer up hill, it has turned into a verticle cliff of pledged delegates CajunBlazer May 2016 #40
Yea, the non partician Urban Institute and the Tax Policy Center...... CajunBlazer May 2016 #5
It is nothing but fact, they never took health care savings under a Medicare for All program Uncle Joe May 2016 #13
Yep, yet another conspiricy aimed and discreting Uncle Bernie CajunBlazer May 2016 #15
There was a link to the source of the walk back if you cared to read it and don't Uncle Joe May 2016 #18
All of your group is confusing. CajunBlazer May 2016 #41
Cali-Democrat is a Hillary supporter, cali is an exceptionally wise Bernie supporter. n/t Uncle Joe May 2016 #43
exceptional wise ... Bernie supporter CajunBlazer May 2016 #46
That is correct. n/t Uncle Joe May 2016 #49
Go Bernie liberal from boston May 2016 #76
"over 10 years" "over 10 years" "over 10 years" "over 10 years" "over 10 years" scscholar May 2016 #8
Here a link to how economists make their plans. Uncle Joe May 2016 #16
For one reason, not program pays off its cost in the first year CajunBlazer May 2016 #17
That's pretty much the way they always do major economic planning. n/t Uncle Joe May 2016 #19
Absolutely, I have done many economic analysis of new product, business procedures.... CajunBlazer May 2016 #31
His assumption that he can give more coverage than Euro countries... CrowCityDem May 2016 #24
Right now, the US spends twice as much as most developed countries for inferior results... Human101948 May 2016 #27
Yep, and unless their is to be a government take over of.... CajunBlazer May 2016 #32
No we can't. I love that campaign slogan. Luminous Animal May 2016 #51
We currently spend less dollars per citizen because Big Pharma medication in the U.S. is the highest Uncle Joe May 2016 #29
So are you planning a government takeover the drug companies too? CajunBlazer May 2016 #42
Bernie proposes using the federal government's much stronger negotiation position to reduce the Uncle Joe May 2016 #47
Chart is way off. I can go to CVS and buy prescription strength Nexium for $35/month OTC. Hoyt May 2016 #56
The chart on this link does take into account "discounts." Uncle Joe May 2016 #57
The chart is flat wrong. Look up the price of Nexium and compare it to the $305 on your chart. Hoyt May 2016 #59
Apparently we have a long way to go. Uncle Joe May 2016 #63
Mainly because we choose not to ration costly drugs like every other country. Hoyt May 2016 #65
Those nations consistently rank as having better health care than we do and your figure of Uncle Joe May 2016 #66
Certainly government regulation of prices and the option to negotiate. Luminous Animal May 2016 #52
Oh, you and your crazy "factual analysis." Dark n Stormy Knight May 2016 #36
The factual analysis of Sanders' programs CajunBlazer May 2016 #45
You want to talk facts? Kindly provide sources for the facts backing Dark n Stormy Knight May 2016 #61
Both of these organizations have debunked the outragious claims of... CajunBlazer May 2016 #64
Their "non-partisan" nature is belied by the very premise of a "Cost Analysis" - not a valid thing lagomorph777 May 2016 #78
What are you redentials CajunBlazer May 2016 #80
The doctors are simply pointing out what was already obvious lagomorph777 May 2016 #81
The doctors are not trained in the field CajunBlazer May 2016 #83
So your employer never worried about what they were buying for the cost? lagomorph777 May 2016 #84
Sorry, but you're clueless on this subject CajunBlazer May 2016 #86
What Isaiah J. Poole said... Octafish May 2016 #54
I don't know if you saw Bernie's Speech in Salem Oregon, Octafish but it was the epitome Uncle Joe May 2016 #55
Thanks for posting this video, Uncle Joe. Duppers May 2016 #67
It truly is an enigma, wrapped within a riddle dipped in a melted $100,000 candy bar? Uncle Joe May 2016 #70
Neither the The Urban Institute nor the Tax Policy Center are exactly bastions of impartiality. Dark n Stormy Knight May 2016 #62
Kicked and recommended to the Max! Enthusiast May 2016 #68
This message was self-deleted by its author Corruption Inc May 2016 #73
"Cost Analysis" is not a real thing. Meaningless unless it's a "Cost/Benefit Analysis." lagomorph777 May 2016 #77
They want us to ignore the well documented costs in all the single payer nations. Enthusiast May 2016 #79
Yup the DNC has not moved to the right TimPlo May 2016 #82

Response to Uncle Joe (Original post)

Response to Trust Buster (Reply #9)

 

Human101948

(3,457 posts)
25. What's abusive is Democrats promoting Republican policies...
Wed May 11, 2016, 08:20 PM
May 2016

It's amazing that DU tolerates such anti-Democratic Party values behavior.

Response to Trust Buster (Reply #26)

Uncle Joe

(58,483 posts)
48. I live in the PRESENT, stating with absolute certainty that future events will unfold as if one
Wed May 11, 2016, 09:10 PM
May 2016

has a crystal ball, is nothing but fantasy.

Uncle Joe

(58,483 posts)
53. Anyone that truly understands mathematics would know that the U.S. consists of 50 states,
Wed May 11, 2016, 09:19 PM
May 2016

some of which have yet to vote including the most populous state in the nation.

Anyone understanding mathematics would know not to total their balance with unknown expenditures not having come in, aka; "don't count your chickens before they're hatched."

Anyone understanding human dynamics would know that all manner of events; some known and others unknown can change the course of future events.

Anyone understanding the past would know that nothing is written in stone, as even history is constantly revised.

Uncle Joe

(58,483 posts)
21. I've done the math and to date Hillary doesn't have enough pledged delegates to get the nomination,
Wed May 11, 2016, 08:11 PM
May 2016

super-delegates are nothing but a glorified poll at this stage, they can't even vote until the convention.

Uncle Joe

(58,483 posts)
38. Of course, you nor I know what the total pledged delegate count will be and this will
Wed May 11, 2016, 08:45 PM
May 2016

have an effect on the super-delegates.

There are other dynamics that could come into play as well before the convention.

Nobody has a crystal ball.

lunamagica

(9,967 posts)
12. He is still three million of votes and hundreds of PDs behind
Wed May 11, 2016, 08:01 PM
May 2016

He barely won Indiana, a state where she didn't even advertise.

And 40% of voters who voted for him in WV, said they WILL vote for Trump in Nov.

Pyrrhic victories, at best...

Uncle Joe

(58,483 posts)
23. Hillary's vote lead is artificial, in many state primaries Independents couldn't vote
Wed May 11, 2016, 08:14 PM
May 2016

in their Democratic Primary.

That won't be the case in the general election.

Bernie won in West Virginia by double digits, the same state in which Hillary defeated Obama by 40 points in 2008.

CajunBlazer

(5,648 posts)
37. I remember when Sanders fans were whinning about Hillary winning...
Wed May 11, 2016, 08:44 PM
May 2016

... states which will go Republican in the GE. Do you think WV is going to vote Democratic when in exit polls 40% of those who voted for Sanders say they are going to vote for Trump in November regardless of who is the Democratic nominee. Kind of makes you wonder why they voted for Sanders, doesn't it.

Uncle Joe

(58,483 posts)
39. I believe Bernie would be a much more competitive Democratic Nominee than Hillary.
Wed May 11, 2016, 08:48 PM
May 2016

This holds especially true against Trump.

lunamagica

(9,967 posts)
58. Artificial? Artificial is being carried to "victory" by people who state they will vote
Wed May 11, 2016, 09:46 PM
May 2016

for the Republican in Nov. now *that* is artificial

Uncle Joe

(58,483 posts)
60. Artificial is the entropy inducing bubble that too much of the Democratic Party wishes to remain in.
Wed May 11, 2016, 09:58 PM
May 2016




Since 1988, when Gallup routinely began conducting polls by telephone, there have been many years in which more Americans have identified as independents than as Republicans or independents. But the percentage of independents did not reach 40% until 2011, and it has stayed at or above that level for the past five years.

As a consequence, the percentage of U.S. adults identifying as Democrats is now at the lowest point in the past 27 years, down from the prior low of 30% in 2014. Gallup's shift from in-person to telephone interviewing in 1988 complicates the ability to directly compare party identification data collected between the two methods. However, Gallup data from 1951-1987 collected in person never found a yearly average Democratic identification less than 37%, making it safe to conclude that the current 29% is also the low point in Gallup polling history.


http://www.gallup.com/poll/188096/democratic-republican-identification-near-historical-lows.aspx



The general election war will be for the Independents, if the Democratic Party was wise, all states would have open primaries allowing fresh blood/new ideas/bold actions to reinvigorate the party and let the Republicans rot in their isolation.

Agschmid

(28,749 posts)
69. I just checked...
Thu May 12, 2016, 10:29 AM
May 2016

There are still 50 states, I'll let the voting population of the other 48 that they don't matter. West Virginia and Indiana apparently determine the whole outcome.

Uncle Joe

(58,483 posts)
71. That's correct and too many Hillary supporters wish to deny the remaining states the opportunity to
Thu May 12, 2016, 03:23 PM
May 2016

cast their votes for the candidate of their choice.

The corporate media conglomerates are in on the propaganda act as well.

Uncle Joe

(58,483 posts)
74. Yes I knew that, I'm not aware of any posts wherein you called Bernie to
Thu May 12, 2016, 03:38 PM
May 2016

drop out of the race but I've seen plenty here and a drumbeat of propaganda to that effect from the corporate media conglomerates.

Bernie is in it to the last vote in D.C. possibly the convention and beyond depending on the outcomes from the states yet to vote.

 

rhett o rick

(55,981 posts)
10. He is doing one hell of a job considering he is fighting an uphill battle against a candidate
Wed May 11, 2016, 07:59 PM
May 2016

that has been campaigning for decades, isn't afraid to lie and cheat, has the Party Elite behind her, has Wall Street and the billionaires behind her. Sanders has the People behind him and is giving her a race. She is whining for him to quit, why? Because she's not sure she can win. Sooner of later we are going to throw out the corruption of Big Money Fat Cats in our government, then who will you revere like gods? By the way the rich and powerful don't love you and they won't solve poverty.

CajunBlazer

(5,648 posts)
40. It is no longer up hill, it has turned into a verticle cliff of pledged delegates
Wed May 11, 2016, 08:55 PM
May 2016

and his campaign doesn't have climbing gear. It is only a matter of time until it falls to its death.

Sanders never thought he could win - he just wanted his supporters money so he could broadcast the same message he has been preaching all of his life.

And guess what - there is no young socialist with any kind of credentials waiting in the wings, ready to pick up his baton when he falls. Trump is burden for the Republicans and a gift for Hillary. Welcome to the start of an other 8 years of Democratic control White House. I also expect the Democrats to take over the control of the Senate - makes appointing progressiv Supreme Court Justices easier. And the Republicans are even worried about losing the House.

Tell me, where will Sanders's revolution be in 8 years? Hopefully Bernie will still be with us then, but he will probably be retired. He will be 83 when the next president is elected.

CajunBlazer

(5,648 posts)
5. Yea, the non partician Urban Institute and the Tax Policy Center......
Wed May 11, 2016, 07:55 PM
May 2016

are part of the grand conspiracy to unfairly criticize Sanders' socialist proposals by pointing out how much they would actually cost and how they would really increase the tax bill of the middle class. It would be so much easier for Uncle Bernie to sell his programs if everyone was allowed to believe that someone else will have to pay for them.

Now let's see who to believe the Tax policy Center which has specialized in evaluating tax plans for years or two dudes long committed to pushing for a single payer system writing for CNBC? Duh, that's a tough one.

Uncle Joe

(58,483 posts)
13. It is nothing but fact, they never took health care savings under a Medicare for All program
Wed May 11, 2016, 08:02 PM
May 2016

into account or they vastly understated the savings.

On a thread by cali regarding the Urban Institute, apparently they have since walked back their earlier one sided smear job.



Think Tank Walks Back Inaccurate Bernie Bash

The Urban-Brookings Tax Policy Center did a one sided analysis/hit piece on Sanders' economic proposals, which only estimated the potential tax increases. They didn't factor in the benefits of the programs that the taxes would fund, which the Sanders campaign pointed out. They did this one-sided analysis in the heat of the primary and now, when Sanders has far less of a chance at winning, they re-do the analysis and find out that most would see a major net benefit from Sanders' policies (with the poorest benefiting the most), proving that his campaign's critiques were correct.

(snip)

http://thehill.com/policy/finance/279201-study-most-would-see-net-benefits-from-sanderss-proposals

"Study: Most would see net benefits from Sanders's proposals"

...TPC found that the average tax burden would increase by about $9,000 in 2017 but the average amount of benefits would increase by more than $13,000. As a result, households would on average receive a net income gain of almost $4,300 under Sanders’s proposals, TPC said.

Households in the bottom fifth of income would on average receive a net gain of more than $10,000, and those in the middle fifth of income would have an average gain of about $8,500. Those in the top 5 percent of income would see a net loss of about $111,000, TPC said.



http://www.democraticunderground.com/12511939692

CajunBlazer

(5,648 posts)
15. Yep, yet another conspiricy aimed and discreting Uncle Bernie
Wed May 11, 2016, 08:06 PM
May 2016

And CaliDemocrat is the real expert. When will it all end?

Uncle Joe

(58,483 posts)
18. There was a link to the source of the walk back if you cared to read it and don't
Wed May 11, 2016, 08:08 PM
May 2016

confuse "cali" with "CaliDemocrat."

 

scscholar

(2,902 posts)
8. "over 10 years" "over 10 years" "over 10 years" "over 10 years" "over 10 years"
Wed May 11, 2016, 07:58 PM
May 2016

Why not just say the amount rather than exaggerating it by an order of magnitude?

CajunBlazer

(5,648 posts)
17. For one reason, not program pays off its cost in the first year
Wed May 11, 2016, 08:07 PM
May 2016

They are doing Uncle Bernie a favor by taking it out ten years.

CajunBlazer

(5,648 posts)
31. Absolutely, I have done many economic analysis of new product, business procedures....
Wed May 11, 2016, 08:32 PM
May 2016

... and they are all done for multiple years.

 

CrowCityDem

(2,348 posts)
24. His assumption that he can give more coverage than Euro countries...
Wed May 11, 2016, 08:16 PM
May 2016

For the same, or less money, is indeed ridiculous.

The whole plan is shoddy and I'll thought out. Remember when it initially called for saving more on drugs than we spend each year?

 

Human101948

(3,457 posts)
27. Right now, the US spends twice as much as most developed countries for inferior results...
Wed May 11, 2016, 08:25 PM
May 2016

That is a fact. Why is that so hard to comprehend?

The 2014 Commonwealth Fund survey found that the United States ranks lowest when it comes to quality and efficiency of healthcare systems among 11 industrialized countries.

The healthcare system of the United States has been a topic of heated debate in the last decade but its performance has always remained consistent, ranking worst among industrialized countries for the fifth time. It was also the case in 2004, 2006, 2007 and 2010. The United Kingdom was ranked as the best while Switzerland followed closely behind. The researchers also studied Australia, France, Canada, the Netherlands, Germany, Norway, New Zealand and Sweden.

The report said the United States spent $8,508 on healthcare per person in 2011 but the United Kingdom only spent $3,406 per person even as it ranked higher in providing quality and safe healthcare than the U.S. All other 10 nations spend a lot less than the U.S. healthcare per person and as a gross domestic product but still achieved better quality.

http://www.techtimes.com/articles/8652/20140617/u-s-health-care-system-ranks-last-lags-behind-developed-nations.htm

Why are you fighting for Republican style health care?

CajunBlazer

(5,648 posts)
32. Yep, and unless their is to be a government take over of....
Wed May 11, 2016, 08:34 PM
May 2016

... of all Hospitals, drug companies, and doctors' practices it is going stay that way, with or without a single payer system.

But don't worry about it Sanders and his programs are kaput.

Uncle Joe

(58,483 posts)
29. We currently spend less dollars per citizen because Big Pharma medication in the U.S. is the highest
Wed May 11, 2016, 08:26 PM
May 2016

priced in the Industrialized World and thus a large % of Americans simply can't afford their medicine and either don't buy it or end up cutting their pills in half.

Medicare for All would vastly increase the market by covering every American and allowing the government to negotiate for much lower drug prices.

Every major nation in the world covers their citizens' health care, apparently they actually value their peoples' well being, there is simply no excuse for the wealthiest nation not to be doing the same.

Uncle Joe

(58,483 posts)
47. Bernie proposes using the federal government's much stronger negotiation position to reduce the
Wed May 11, 2016, 09:07 PM
May 2016

ridiculous prices that Americans pay for prescription drugs.

There is simply no logical reason for Americans to be paying the highest prices in the world except for greed and an asleep at the wheel monopolized, conflict of interest loaded corporate media conglomeration in the U.S.



This chart reveals the inhumanity of US drug prices compared to other countries

Corrupt former hedge funder Martin Shkreli — who hiked the price of an AIDS pill by 5500 percent overnight — is only the latest example of price gouging in the pharmaceutical industry. But US drug prices have been skyrocketing across the country for years. As the following chart illustrates, drug prices in the US are up to 10 times higher than in numerous other developed countries. Data comes from the International Federation of Health Plans (IFHP) 2013 Comparative Price Report.




http://usuncut.com/news/us-drug-prices-in-the-us-are-literally-insane-when-compared-to-other-nations/

 

Hoyt

(54,770 posts)
56. Chart is way off. I can go to CVS and buy prescription strength Nexium for $35/month OTC.
Wed May 11, 2016, 09:35 PM
May 2016

Celebrex -- I can get at CVS with their discount card for about $50.

Appears the chart above is based on charges. No insurance company, not even Medicare Advantage Plans pay anywhere near "charges" for any drug, hospital stay, physician services, etc.

Uncle Joe

(58,483 posts)
57. The chart on this link does take into account "discounts."
Wed May 11, 2016, 09:44 PM
May 2016


The U.S. Pays a Lot More for Top Drugs Than Other Countries

Prices for brand-name drugs are typically higher in the U.S. than other developed countries. The drug industry has argued it's misleading to focus on U.S. list prices that exclude discounts struck behind closed doors with insurers.

A Bloomberg News analysis finds that even after these discounts, prices are higher in the U.S. than abroad. Seven of eight top-selling drugs examined still cost more in the U.S. than most other countries.


(snip)

Of the eight drugs analyzed, seven cost more in the U.S. after estimated discounts than in most other high-income countries. Discounts for the eighth drug, the cancer treatment Gleevec, couldn't be obtained, but its list price in the U.S. is far higher than in the rest of the world.

The list price of Merck & Co.'s diabetes pill Januvia is cut in half on average by estimated discounts, according to the SSR Health data. Even so, Merck gets more than twice as much in the U.S. for a monthly supply of the same drug as in Canada, the next most costly place to buy it, Bloomberg found. Humira, AbbVie Inc.'s best-selling rheumatoid arthritis treatment, costs an estimated $2,500 a month in the U.S. after discounts, compared with about $1,750 in Germany, Bloomberg found. In other nations, the drug's price drops even lower.

A Merck spokeswoman said the company doesn’t disclose the discounts for competitive reasons. AbbVie said U.S. drug sales go through many channels with different levels of prices and rebates.

The analysis found that Roche Holding AG's Herceptin breast cancer drug, after rebates of roughly 15 percent, still cost about 85 percent more in the U.S. than in other high-income countries, and a third more than in Saudi Arabia, where the price is highest after the U.S. Roche takes drug prices "very seriously" and strives for the right balance between ensuring patient access to important medicines and investment in future breakthroughs, a spokeswoman said.


(snip)

In Europe, drug prices are often set by government health systems and decline over time as countries demand additional price cuts, said Floriane Reinaud, a principal analyst at IHS.

"In the U.S., list prices are just a little bit crazy, and even with discounts that are tied to that it is still higher than Europe," Reinaud said.


(snip)

However, even very large discounts don't erase the price differentials between the U.S and other countries. After an estimated discount of 60 percent, AstraZeneca still charges more than twice as much in the U.S. for Crestor, a cholesterol pill, compared to Germany, and in other countries the price is even lower, according to the analysis of IHS data.

Sanofi gives U.S. discounts of about 50 percent on Lantus, a long-acting insulin, SSR Health found. It still costs 30 percent more in the U.S. than in China, the second-most expensive country. After an estimated 50 percent discount in the U.S. market, GlaxoSmithKline Plc's Advair asthma inhaler costs at least twice as much in the U.S. compared to other countries analyzed.


(snip)


http://www.bloomberg.com/graphics/2015-drug-prices/

 

Hoyt

(54,770 posts)
59. The chart is flat wrong. Look up the price of Nexium and compare it to the $305 on your chart.
Wed May 11, 2016, 09:53 PM
May 2016

Call up your pharmacist and ask them how much they will make you pay (not charge you) if you get a prescription for Celebrex. It's no where near what is on that chart. And, HMOs like Kaiser, United Healhcare Plans, etc., get even bigger discounts.

We need to cut prices even further, but the chart is grossly inaccurate.

I have been for single payer since the early 1980s. But, blowing smoke about cost will not help get it done. Nor will pulling reductions in provider costs, utilization, etc., out of ones rear, help make intelligent decisions.

Uncle Joe

(58,483 posts)
63. Apparently we have a long way to go.
Wed May 11, 2016, 10:16 PM
May 2016


Why do Americans spend so much on pharmaceuticals?

The United States spends almost $1,000 per person per year on pharmaceuticals. That’s around 40 percent more than the next highest spender, Canada, and more than twice as much as than countries like France and Germany spend. So why does the U.S. spend so much? Is it because Americans take more medicines or because they pay higher prices? Can Americans afford the drugs they need? And will the Affordable Care Act change anything?



(snip)

Americans also have faster access to new drugs than patients in many other countries. That’s in part because the U.S. has always been a very attractive market for pharmaceutical companies: It’s big, accounting for 34 percent of the world market; has low levels of price regulation; and offers few barriers to market entry once FDA approval has been secured. (By contrast, in some other countries there may be a time lag between clinical approval of a drug and the point when it is added to official lists of reimbursable drugs.)

(snip)

But if Americans take more pharmaceuticals, they also pay more for them. Prices in the U.S. for brand-name patented drugs are 50 to 60 percent higher than in France and twice as high as in the United Kingdom or Australia. That’s because in many countries, government agencies essentially regulate the prices of medicines and set limits to the amount they will reimburse; they may only agree to pay for a drug if they feel that the price is justified by the therapeutic benefits. This centralized approach can also give them more bargaining power over drug makers.

By contrast, in the U.S. insurers typically accept the price set by the makers for each drug, especially when there is no competition in a therapeutic area, and then cover the cost with high copayments. Where there are competing drugs, insurers enjoy more bargaining power and may negotiate discounts with manufacturers in exchange for lower cost-sharing for patients. In off-patent markets, the competition is fierce and prices of generic drugs are low. Generic penetration is high in the U.S. and their use spreads quickly: within six months of a patent expiring on a drug, generics typically account for 80 percent of the market. Generics now account for 28 percent of pharmaceutical spending and 84 percent of drugs dispensed in the U.S., which is high by OECD standards.

(snip)

Can patients access the drugs they need? While the financial burden for households has declined over the past years, it is clear that many Americans are not taking their recommended medications because of the high costs. A recent survey showed that around one in five U.S. adults did not fill out their prescription or skipped doses because of the costs of medicines in 2013. The proportion was less than one in ten in Germany, Canada and Australia. The difference is that, unlike in the U.S., health coverage in most other OECD tends to be universal. Patients often have to share the costs of pharmaceutical treatments, but they get exemptions if they are poor, severely ill or have reached a certain level of out-of-pocket payments.

(snip)


http://www.pbs.org/newshour/updates/americans-spend-much-pharmaceuticals/


 

Hoyt

(54,770 posts)
65. Mainly because we choose not to ration costly drugs like every other country.
Thu May 12, 2016, 01:05 AM
May 2016

Yes, price cuts will help, but we need to say the cost is too much for that drug, if you want to sell it here, you need to cut the price. Unfortunately, that MIGHT save us $50 Billion, a pittance in the total cost of health care.

Uncle Joe

(58,483 posts)
66. Those nations consistently rank as having better health care than we do and your figure of
Thu May 12, 2016, 02:15 AM
May 2016

$50 billion doesn't come close to the estimate in the OP.



3. Drug costs: The analysis projects that a single-payer plan would have to pay 50 percent higher drug costs than those paid at present by Medicaid. Moreover, the estimate assumes that the U.S. would continue to pay much higher prices for drugs than other nations, despite the fact that a U.S. single-payer system would have much greater negotiating leverage with drug companies than other national health insurance schemes.

Reducing drug prices to the levels currently paid by European nations would save at least $1.1 trillion more over 10 years than the report posits.


http://www.cnbc.com/2016/05/11/the-attack-on-bernie-sanders-single-payer-plan-is-ridiculous-commentary.html



I don't believe the "rationing" issue to be anything but a red herring.

CajunBlazer

(5,648 posts)
45. The factual analysis of Sanders' programs
Wed May 11, 2016, 09:03 PM
May 2016

was done by professionals working for non-profit, non-partisan organizations who specialize in doing that kind of analysis. The OP is citing a article written two dudes who run an organization which has been pushing the single payer concept for years. Yea, we should believe them rather than believe the professionals who have no dog in the fight.



Check your facts before you post; it's less embarrassing that way.

Dark n Stormy Knight

(9,771 posts)
61. You want to talk facts? Kindly provide sources for the facts backing
Wed May 11, 2016, 10:01 PM
May 2016

your high opinion of the validity and reliability of recommendations from the "non-profit, non-partisan organizations" whose word you hold in such high esteem.

Tell us how you are so sure that The Urban Institute, which receives funding from government contracts, foundations and private donors, has no dog in the fight? Substantiate your claim that the Tax Policy Center, established by tax specialists who served in the Ronald Reagan, George H.W. Bush, and Bill Clinton administrations, are impartial in this situation.

Go on, we'll wait here.

Also, please give references for your conclusion that David U. Himmelstein and Steffie Woolhandler, co-founders of Physicians for a National Health Program, do not have sufficient factual information to back their support for a single payer program and are therefore not to be trusted to deliver fair analysis of domestic healthcare policy proposals.

Provide sources for the churlish allegations in your arrogant posts: you'll seem less of a high-handed hypocrite that way.

CajunBlazer

(5,648 posts)
64. Both of these organizations have debunked the outragious claims of...
Thu May 12, 2016, 12:59 AM
May 2016

...about the tax plans of both Democratic and Republican candidates, of both Liberals and conservatives. Their record indicate they play no favorites.

On the other hand David U. Himmelstein and Steffie Woolhandler are both huge Sanders supporters and were the founders of and now run an organization, "Physicians for a National Health Program" which has as its sole purpose to push for a single payer system. They are MD's, not economists (most of doctors I know, and I plenty since my wife works in medical administration, have trouble running their practices and aren't good at simple finance). In addition these two are obviously prejudice on the subject.

lagomorph777

(30,613 posts)
78. Their "non-partisan" nature is belied by the very premise of a "Cost Analysis" - not a valid thing
Thu May 12, 2016, 05:07 PM
May 2016

A "Cost Analysis" which ignores everything purchased for that cost is completely meaningless. The entire premise is blatantly partisan.

A plausible study would have at least pretended to be a "Cost/Benefit Analysis"

This nonsense does not pass the test.

CajunBlazer

(5,648 posts)
80. What are you redentials
Thu May 12, 2016, 10:16 PM
May 2016

What are your credentials to judge a financial analysis done professionals?

If as I would guess from you post, you do not have an economic and/or financial background, are you are basing your opinion on an article written by two medical doctors, also with no economic or financial credentials, who run an organization which has one goal, pushing a single payer system?

lagomorph777

(30,613 posts)
81. The doctors are simply pointing out what was already obvious
Fri May 13, 2016, 09:53 AM
May 2016

The so-called "professionals" wrote a hit piece. Look it up: "Cost-Benefit Analysis", "Cost-Effectiveness Analysis" and "Cost-Utility Analysis" are all real (and related) things. "Cost Analysis" is not. It's obvious to even a layman why that is: "Cost" is meaningless if you don't look at "Benefit" at the same time. Especially when the most important benefit is SAVINGS (i.e. reduced COST).

You don't have to be a CPA, but you do have to have a tiny bit of common sense to see it.

CajunBlazer

(5,648 posts)
83. The doctors are not trained in the field
Mon May 16, 2016, 10:55 PM
May 2016

And of course they have a dog in the fight; the groups who evaluated Sanders' tax plan do not.

Being a CPA does not generally give you an insight in to how cost/benefit analysis is performed - they are accounts, not analysit. While some may venture into the field, it is not in the normal account's skill set.

On the other hand, I do have a background in cost benefit analysis. I have an MBA and I worked in the field for a S&P 50 (fifty) company for three years. And I have come to the conclusion based on you posts that you also don't know what the hell you are talking about.

lagomorph777

(30,613 posts)
84. So your employer never worried about what they were buying for the cost?
Tue May 17, 2016, 02:50 PM
May 2016

That doesn't sound like a great plan to stay in the S&P top 50.

If you have an MBA then I have to conclude you are only pretending not to know what you are talking about.

Cost without benefit is 100% waste, right? That's obviously the impression the hit piece is trying to give. By deliberately ignoring the benefits, you are taking the classic RW stance that no government expenditure ever produces a meaningful benefit. I have no interest in debating RW talking points because I am a rationalist and deliberate nonsense insults my intelligence.

You are off to the ignore bin. Buh-bye.

CajunBlazer

(5,648 posts)
86. Sorry, but you're clueless on this subject
Tue May 17, 2016, 03:06 PM
May 2016

You wouldn't know how to design a cost benefit analysis if your life depended on.

Imagine if someone equally clueless started telling you they know better than you how to do your job.

Octafish

(55,745 posts)
54. What Isaiah J. Poole said...
Wed May 11, 2016, 09:25 PM
May 2016

"To count all of the imagined pitfalls of a policy but not count the real benefits is intellectually dishonest."

http://www.commondreams.org/views/2016/05/11/questionable-assumptions-behind-critiques-sanders-economic-plan

Thank you for a great OP and thread, Uncle Joe. Amazing what a Berni Sanders administration could do for the People.

Uncle Joe

(58,483 posts)
55. I don't know if you saw Bernie's Speech in Salem Oregon, Octafish but it was the epitome
Wed May 11, 2016, 09:33 PM
May 2016

of being Presidential, one of his best ever.

It begins around the 17:00 mark.



I do believe a President Bernie Sanders would go a long way toward lifting up our nation, of course the movement has to stay energized and assist him after the election should he and we be so fortunate as to elect him.

Peace to you, Octafish.

Duppers

(28,130 posts)
67. Thanks for posting this video, Uncle Joe.
Thu May 12, 2016, 07:23 AM
May 2016

I had it bookmarked to watch and had forgotten to do so.

And a big K & R for your OP.

Strange that before these primaries, it seemed that most DUers favored Single Payer.



Uncle Joe

(58,483 posts)
70. It truly is an enigma, wrapped within a riddle dipped in a melted $100,000 candy bar?
Thu May 12, 2016, 03:19 PM
May 2016


Peace to you, Duppers.

Dark n Stormy Knight

(9,771 posts)
62. Neither the The Urban Institute nor the Tax Policy Center are exactly bastions of impartiality.
Wed May 11, 2016, 10:11 PM
May 2016
The Urban Institute is said to receive funding from government contracts, foundations and private donors. No guarantee of impartiality.


The Tax Policy Center was established by "tax specialists" who served in the Ronald Reagan, George H.W. Bush, and Bill Clinton administrations. Almost a guarantee against impartiality in the Clinton vs. Sanders race.

Response to Uncle Joe (Original post)

lagomorph777

(30,613 posts)
77. "Cost Analysis" is not a real thing. Meaningless unless it's a "Cost/Benefit Analysis."
Thu May 12, 2016, 04:53 PM
May 2016

This garbage is absolutely a discredit to the clowns who wrote it.

OMG I just noticed that the realistic estimate of savings in payment processing overhead is identical to my own estimate: $6 trillion over ten years.

 

TimPlo

(443 posts)
82. Yup the DNC has not moved to the right
Fri May 13, 2016, 10:12 AM
May 2016

I read this all time on here people claiming the DNC has not shifted to right. And yet here we have a thread where people that call themselves democrats are arguing about how US can never do Single payer. For years I stayed away from left leaning message boards and posted mainly arguing on right winger boards with GOPers. And yet here I see same exact thing being said in here by Clinton supporters as I would see in threads on there.

So is DU no longer a left leaning board? As it seems that if you a someone on left who wants to fight for single payer healthcare you are not liked here by some.

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