Big Pharma's sweetheart deal
There has been much discussion about the role of insurance companies in putting the kibosh on health care reform, but they are far from the only industry in the fight. Early on, the big culprit in the escalating cost of health care was considered to be big pharma, but they cut a deal with the politicians. That deal needs to be scrutinized.
Lets look at what the drug and medical device makers are getting out of the deal. First, they are getting double the length of time from release of product to release of generic. In an amendment that passed both the house and the HELP committee, the length of a patent for new drugs was increased to twelve years.
The drug companies were able to dictate that it would continue to be illegal to import medicines from Canada or other overseas sources. Now, they may be right that the quality is better in American made drugs. But this should mean that people will continue to pay more for them. Big pharma still gets its big money.
They also get to avoid government price controls. Now, I am not generally a fan of government price controls, but I do wish the government weren't making it easier for the drug companies to stifle competition. If big pharma gets to keep it's monopoly, then we need an equally monolithic price negotiator to keep them close to honest. I just wish there were a less corrupt one available than the government.
Perhaps the biggest benefit to the drug and medical equipment manufacturers? They get to stop being the villain. They are still donating more to congressional campaigns than any other medical industry, but they look like angels, because they “volunteered” to take a sweetheart deal.







That’s great, I never thought about Big Pharma's sweetheart deal like that before.
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