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The Insurance Industry's Misguided War on Drugs
Investor's Business Daily ^ | 06/16/2014 | IBD Staff

Posted on 06/17/2014 4:25:57 AM PDT by IBD editorial writer

Anti-Capitalism: You'd think that after ObamaCare's chaotic launch, premium rate shocks, subsidy foul-ups and costly ad hoc changes, the insurance industry would attack the law. Instead, it's slamming the drug industry.

"Drugmakers have no straight-face explanation to justify the increasingly astronomical prices they have been charging for their medications," complains one of numerous public relations communications sent recently by the industry trade group America's Health Insurance Plans.

The group has called drug prices "unsustainable" and accused the industry of "price gouging."

The focus of the industry's fury at the moment is Sovaldi, a breakthrough treatment that can cure Hepatitis C, but which costs $84,000. These are the same complaints lodged for years by leftist groups that want price controls on prescription drugs — complaints that are at odds with the facts.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Editorial; Government; News/Current Events
KEYWORDS: insurance; obamacare; pharmaceuticals; pricecontrols

1 posted on 06/17/2014 4:25:58 AM PDT by IBD editorial writer
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To: IBD editorial writer

Oh my, who to root for. I’ll side with both. Let them beat each other bloody.


2 posted on 06/17/2014 4:30:04 AM PDT by Wolfie
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To: IBD editorial writer

I’m a lot more concerned with their idiotic war on climate change.


3 posted on 06/17/2014 4:35:52 AM PDT by cripplecreek (Remember the River Raisin.)
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To: IBD editorial writer

The pharmaceutical companies are price gouging.

My son’s acne cream Epiduo costs $300.00. it consists of Retin A and Benzoil Peroxide.

The Pharma companies are predators as far as I’m concerned. The FDA legalized heroin in pill form, and it is even prescribed to children, despite $millions distributed in wrongful death lawsuits, and horrific statistics of addiction, abuse, and of course death.

When Oxycontin was introduced in the late ‘90s, OxyContin was touted as nearly addiction-proof — only to leave a trail of dependence and destruction. Its marketing was misleading enough that Purdue pleaded guilty in 2007 to a federal criminal count of misbranding the drug “with intent to defraud and mislead the public,” they paid $635 million in penalties.

Ttoday it’s business as usual, except there are dozens of opiates in pill and even lollipop form, and the opiate abuse epidemic has now surpassed alcohol and car accidents in accidental death statistics. It is the #1 killer in accidental deaths in the US.

http://elitedaily.com/news/world/prescription-painkillers-overtake-car-crashes-leading-accidental-death-us/

Heroin is prescribed in pill form by doctors to children. It is available in lollipop form.

http://www.lexi.com/individuals/dentistry/newsletters.jsp?id=december_10
Actiq®, The Sugar-Loaded Opiate Lollipop and the Risk for Tooth Decay

Risk for “tooth decay” is the warning families are given!!!!

They are everywhere today and our government, doctors, and schools are the drug pushers. Many kids won’t stand a chance.

If there is any doubt that money influences Washington, remember that Pharmaceutical companies are the BIGGEST spenders in political influence and lobbying as an industry. In 2009 alone political donations totalled $272,979,917.00

https://www.opensecrets.org/lobby/indusclient.php?id=H04&year=2009

For some strange reason too many doctors and nurses are popping ADHD type meds like candy. The influence of the Pharma industry is dangerous.


4 posted on 06/17/2014 4:45:45 AM PDT by mgist (.)
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To: IBD editorial writer
Only the sick are interested in new drugs.

Drug companies take great financial risks to try to create them all the while fighting government regulators.

Insurance companies prefer NO new drugs because they will have to pay for them so they go on the attack.

This provides cover for both the insurance companies and the government when prices necessarily skyrocket due, not to new drugs, but new government regulations and controls.

Universal free health care will consist of an aspirin prescribed by a modern-day witch doctor (affirmative action at all medical schools).

5 posted on 06/17/2014 4:53:27 AM PDT by Aevery_Freeman (Historians will refer to this administration as "The Half-Black Plague.")
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To: Aevery_Freeman
"Only the sick..."

Actually there are too many people trying to medicate their emotional pain. Don't judge them, the problem is that people trust their doctors and Pharmaceutical companies because the FDA gives people a very false sense of security. Can you name any new drugs that actually cure anything? I can't. My fathers's cancer meds killed him, how much money has been spent on cancer research? Anything that can not be patented, such as Vitamin C, is discarded. Many people have been cured with high doses of injectable Vit. C. My nephew was placed on addictive ADHD meds when he was 9, when he was 18 he was diagnosed with Highly Addictive Personality Disorder. Seems there is a strong correlation with addictions and the psychotropic meds for kids. The research has been buried. School shooters, all medicated. Not a word about that in National Media. Wouldn't want to offend your biggest sponsors. No bueno.

6 posted on 06/17/2014 5:10:17 AM PDT by mgist (.)
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To: mgist
The pharmaceutical companies are price gouging. My son’s acne cream Epiduo costs $300.00. it consists of Retin A and Benzoil Peroxide.

You & your son do have the option of using one of the other 1,000 treatments for acne.

I suppose that you are too young to remember Paregoric as grandmother's "super-strength cure for what ails you" before that was banned as a over-the-counter drug?

BTW, "Pharmaceutical companies are the BIGGEST spenders in political influence and lobbying" must be evaluated in the light of the free advertizing that the MSM give to liberal causes & politicians and the value of free indoctrination by academia beginning in Pre-K and the free votes + money from the unions.

There is enough greed and power-seeking in this world to spread the blame around. If "Big Pharma" were to be taken over by the "all compassionate and completely competent government" we'd be waiting in line for aspirin at $5 a pill within 5 years. (/hyperbole)

/rant

7 posted on 06/17/2014 5:28:05 AM PDT by BwanaNdege ( "For those who have fought for it, Life bears a savor the protected will never know")
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To: IBD editorial writer

There is a basis of fact in what the insurance companies are asserting to try to control their costs. They know they can’t change the law.

For example: I purchase what used to be OTC now via prescription with a copay of $10 for 30 pills (one-month supply). I can buy 3x the Qty. of pills OTC in another state for the same amount.

But that’s not the kicker: The insurance company is billed $100 for the prescription I paid $10 copay for.

Just on the basis of the difference between the OTC price vs. the billing the insurance company receives (the cost is lower) the gross margin on that bottle of 30 pills is 98%.

For those not understanding Gross Margin, the ‘Markup’ is >9800%.

And that’s only an example on a common, patent long-expired drug...


8 posted on 06/17/2014 5:34:35 AM PDT by logi_cal869
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To: IBD editorial writer
I never knew either of my grandfathers. Both died at an early age from illnesses that are now cured by a few pills that cost a couple of bucks. These drugs were simply unavailable at the time my grandfathers died.

Most drugs are discovered by drug companies that use their profits to fund drug research. It can cost upwards of a billion dollars to bring a new drug to market (Thank you FDA). The profits of drug companies are not out of line with most other businesses. Maybe some day your and my grandchildren will be able to enjoy their grandfathers because of drugs that are yet undiscovered, but for the profits of drug companies.

9 posted on 06/17/2014 5:45:08 AM PDT by norwaypinesavage (The Stone Age didn’t end because we ran out of stones)
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To: IBD editorial writer

Obamacare was designed to do this.

Get the various sectors still operating under Capitalism to begin slicing each other to pieces in a battle for resources. Then Big Gov can march in and pick up the pieces.


10 posted on 06/17/2014 6:31:18 AM PDT by Buckeye McFrog
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To: Aevery_Freeman
Drug companies take great financial risks to try to create them all the while fighting government regulators.

The drug companies are entitled to a return on those risks.

But that return should not be the total responsibility of the American consumer, while the same drugs are sold abroad for pennies on the dollar compared to the domestic price.

11 posted on 06/17/2014 8:32:48 AM PDT by Eric Pode of Croydon
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To: Eric Pode of Croydon
Sometimes foreign countries steal American innovations - pennies are better than nothing.

Not condoning bad behavior but it would seem all governments are corrupt, they just specialize in certain areas.

12 posted on 06/17/2014 10:00:48 AM PDT by Aevery_Freeman (Historians will refer to this administration as "The Half-Black Plague.")
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To: Wolfie
Everybody wants something for nothing. The age of entitlement let loose right here on FR.
13 posted on 06/17/2014 6:21:17 PM PDT by hinckley buzzard
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