Financial Post:
(Bloomberg) โ President Donald Trump announced new policies Friday aimed at lowering prescription drug prices under Medicare by linking them to rates paid in other countries and allowing Americans to buy prescription medication imported from Canada.
The four executive actions come as the president is looking to repair his standing on health-care issues โ particularly with senior voters โ as polls show sentiment souring over his handling of the coronavirus pandemic and efforts to eliminate Obamacare without having a ready replacement. MORE
It will be interesting to see how this works out, what the total cost outcome for the average consumer turns out to be.
I used to pay 336 dollars for a vial of insulin. (Cash. I Have no insurance)
As of February, it’s now 136 dollars. It’s still high compared to paying only $65 dollars before 0bama fucked everything up, but it’s better than 336! And that was the lowest price I could find.
The drug manufacturer decided to make a generic in January. Same formula different label. But the pharmacies won’t say anything unless you know to ask them for it.
All that will happen is that prices will drop for a while.
CEOs will meet in some obscure location when no one is watching about a year latter.
They will increase their distribution & export prices in other markets first and more strictly enforce their existing patents and intellectual property (looking at you Ap—x in Canada). I wonder why Barry Sherman was murdered???? Hmm.
Once ALL the other prices float up, citing the greater costs of a post COVID-1984 world, we/you will be right back where you started within 2 years but with greater profits from the export markets.
Its how the Concrete business in Toronto, New Jersey, New York, Shitcago work. Not Sicily because no one works in Italy! ๐
“The international drug price rule ties what the federal government pays for certain Medicare drugs to the lower prices other countries pay for the same products.”
Since when has Medicare paid anything for prescription drugs? Medicare has never paid a dime for mine. I’ve been having to buy a seprate insurance policy for prescription drugs that only covers a percentage of the costs. Trump must be referring to the Joe Namath medicare plan, but I can’t find a source to sign up for that plan. It’s the plan where you get free rides to doctor’s appointments, free meals delivered to your home, private home aids, and more and it’s all free.
Anything is a help, but…
How about FIXING the “Donut Hole!”
As in doing away with it altogether.
If your Diabetic it costs a small fortune to stay supplied with drugs and supplies. You quickly enter into it and stay until you’ve paid out lots. That’s if you can even afford to pay it.
https://www.healthline.com/health/medicare/medicare-donut-hole
Global corporations have moved a lot of manufacturing to China and elsewhere. Global corporations have manipulated prices such that instead of being set by “supply and demand” they are set artificially based on what the market can bear. Consequently, Americans often pay more than people in other countries because of massive American government purchasing and/or the direct or indirect supplementation of the cost of these drugs and/or related medical costs. (It’s not about only purchases by individuals at the pharmacy — think in-hospital, Medicaid, military, and Obamacare insurance subsidizing). It’s an excellent multipurpose move by Trump.
If the plan works similarly to the way Canada works their plan the provinces (as well as the feds) work together to come up with a price they’ll pay for a new drug. Negotiations take place and when the price is agreed upon then wholesalers, pharmacy chains, hospitals, individual pharmacies and anyone licensed to dispense drugs will pay that price. Then it’s up to the sellers to determine the price as long as it doesn’t exceed the Patent Medicine Review Board (those are the guys that negotiated the price in the first place) set price.
One other thing I should mention is that Canada used to give an additional 5 years of patent protection however I believe that has been to reduced to 20 to match most other countries including the US. Canada does provide for a number of other protections (data for example) for the patent holder to increase it’s value and longevity of sales.
One thing to note as well is that some provinces have introduced (for quite some time now) “mandatory generic substituion” when filling prescriptions. This means that if a doctor prescribes the brand name drug the pharmacist will automatically substitute the generic. This is valid on insurance drug plans and the provincial plans. The exceptions are if the doctor indicates “no substitution” and the insurance plan allows that or the patient demands no substitution and is willing to pay the difference. This generally forces the brand name manufacturer to lower prices after their patent is up and a generic has been introduced.
There are a number of things a manufacturer can do to try to extend the life of his patent and one way is to re-introduce the drug but for a different purpose. Wellbutrin is an example. Originally it was sold as a anti-depressant but years later was found to have properties that helped kick smoking. It was rebranded and got a new 20 year patent. Anyway, I haven’t read Trump’s regulations but if they follow Canada’s (and most of the worlds) the US is in for a lot of savings. Oh, and regrdless of what the Manufacturers say they won’t stop research on new drugs. They still make a lot of money.