Rising Prices of Drugs Lead to Call for Inquiry

New York Times ^ | November 18, 2009 | Duff Wilson

[reaganaut1]

Democrats in Congress asked for two separate investigations of drug industry pricing Wednesday as they continue working on legislation to overhaul the nation’s health care system.

Responding to news reports of unusually high wholesale price increases in brand-name prescription drugs, four House leaders and one senator asked for government reviews of the pricing practices.

Although drug makers challenge the theory, some experts say the run-up in wholesale prices may be partly related to the industry’s concerns about future cost containment under any health care legislation.

“Recent studies have indicated that the industry may be artificially raising prices for certain pharmaceutical products in expectation of new reforms,” the House Democrats wrote in a letter to the Government Accountability Office, a nonpartisan investigative arm of Congress. “Any price gouging is unacceptable, but anticipatory price gouging is especially offensive,” the letter added, asking the G.A.O. to conduct an expedited review of the price increases.

The House letter was signed by four representatives who have been active in the health care legislation: Charles B. Rangel of New York, chairman of the Ways and Means Committee; Henry A. Waxman of California, chairman of the Energy and Commerce Committee; and Pete Stark of California, and John Lewis of Georgia, chairmen of two Ways and Means subcommittees.

Separately, Senator Bill Nelson of Florida, a Democrat who has led efforts in the Senate to seek more concessions from drug makers, wrote to the inspector general of the Department of Health and Human Services asking for “an immediate and thorough investigation into drug industry pricing and recent increases, and the extent to which these increases may affect the Medicare and Medicaid programs.”

[reaganaut1]

Since drug companies have the right to set prices for their products, what right does Congress have to investigate?

[LegendHasIt]

And maybe if the idiots in Congress and the White House would quit destroying the value of the dollar and the economy in general, the manufacturers, distributors and the retailers wouldn’t have to raise their prices to stay in production and distribution.

[Vinnie]

And maybe if the idiots in Congress and the White House would quit destroying the value of the dollar and the economy in general, the manufacturers, distributors and the retailers wouldn’t have to raise their prices to stay in production and distribution.

Plus the threat of government interference in pricing.

Not sure if you are old enough to recall Nixon's wage and price control debacle.
While he was mulling over whether he would institute controls most all businesses, mfgrs. raised their prices in anticipation .

[RU88]

This is all a function of the perceived passage of Obamacare. The drug companies know that one of the first casualties of this debacle will be their R&D budgets. Why put out billions on research when there is no realistic expectation that you will be compensated according to your findings? This in turn will have not only long term consequences for Americans but for the entire world considering most R&D is preformed here in the United States.

[CPOSharky]

Although drug makers challenge the theory, some experts say the run-up in wholesale prices may be partly related to the industry’s concerns about future cost containment under any health care legislation.

Just trying to put a few extra bucks in the retirement accounts before the libtard politicians put them out of business.