Big Pharma's shakedown tactics

[marmar]

from the New York Times:



Drug Makers Raise Prices in Face of Health Care Reform

By DUFF WILSON
Published: November 15, 2009


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.

The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year.

Drug makers say they have valid business reasons for the price increases. 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.

“When we have major legislation anticipated, we see a run-up in price increases,” says Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota. He has analyzed drug pricing for AARP, the advocacy group for seniors that supports the House health care legislation that the drug industry opposes. .............(more)

The complete piece is at: http://www.nytimes.com/2009/11/16/business/16drugprices.html?hp

[Ruby the Liberal]

1. Between now and 2013, we will see this exponentially in the industry

Just look at what the banks are doing with credit cards as an example.

Greed sucks.

[no_hypocrisy]

2. It gets worse.

Big Pharma is trying to buy up companies that manufacture and sell natural supplements as an alternative to pharmaceuticals AND lobby Congress to put the supplements under control of the FDA. If this passes, your bottle of $7.95 nettles will only be available after you get a prescription from your doctor (health insurance) and it will cost the equivalent of pharmaceuticals (health insurance).

[Christa]

3. K & R nt