Big Pharma's Institutionalized Kickback Racket

  1. from: http://www.motherjones.com/mojoblog/..._hearings.html
    steven schondelmeyer of the university of minnesota said the pharmaceutical industry insists its products make up a relatively small part of the health care budget. yet, he pointed out, "half of all working adults and three quarters of elderly use one prescription every week... the drug industry accounts for 4 percent of the nation's overall economy and 18-19 percent of the health care dollar."
    "let's quit minimizing drugs," said shondelmeyer. "this is an institutionalized case of kickback."
    different government agencies pay different prices for the same drugs. "there is no way of knowing whether and how the market works," said gerard anderson, a johns hopkins professor who has tracked the pharmaceutical industry. "some states pay five times more than other states."

    the free market sure is working to provide sevices at a lower cost to consumers for the pharmaceutical industry. hsa's (if widely adopted) will just turn into another giveaway from the public treasury.
    •  
  2. 1 Comments

  3. by   pickledpepperRN
    * Annual research and development spending by the pharmaceutical industry increased 147% between 1993 and 2004. In the same period, the number of new drug applications to the Food and Drug Administration grew by only 38% and has generally declined since 1999, according to a GAO report (Washington Post, Dec. 20, 2006).

    * In 2004, the world’s 13 largest drug companies reported $62 billion in profits; the top 12 drug company executives collected $192.7 million in compensation (IHSP).

    * Close ties exist between the lawmakers and the industry. Billy Tauzin, who shepherded the 2003 Medicare bill through Congress, which specifically bars the government from negotiating drug discounts for the new Medicare prescription drug benefit, subsequently went to work for the Pharmaceutical Research and Manufacturers of America at an estimated $2 million per year. (Krugman, New York Times, May 6, 2005) -

    http://topics.nytimes.com/top/refere...zin/index.html
    http://www.usatoday.com/money/indust...ugs-usat_x.htm

close