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SUNDAY, NOVEMBER 8, 2009
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Obama? Big Pharma. Here's an $80B Drug Discount

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(Newser) – Big Pharma has offered the feds a discount of up to $80 billion on drugs for programs like Medicare, the Washington Post reports. The pledge, which comes at a crucial moment in the health-reform debate, may be a pre-emptive strike before President Obama pushes for a proposed $100 billion price cut. “There was a great deal of sticker shock" when the White House floated that number, a drug company exec said.

US lawmakers are suffering from sticker shock of their own. After the price tag for health care overhaul came in at $1 trillion this week, the House unveiled a bill yesterday mandating changes that Big Pharma hopes to make independently. Rep. Henry Waxman called the bill an attempt to recover the "windfall" that drug companies made when the Medicare prescription drug benefit kicked in 3 years ago.

The health care reform bill.
The health care reform bill.   (AP Photo)
The Roche plant in Kaiseraugst, Switzerland.
The Roche plant in Kaiseraugst, Switzerland.   (AP Photo)
A production technician at Eli Lilly and Company examines pills.
A production technician at Eli Lilly and Company examines pills.   (AP Photo)
President Barack Obama mimes a phone call.
President Barack Obama mimes a phone call.   (AP Photo)
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ultramarine13
Jun 20, 09 11:57 PM CDT
I think the system needs a top down overhaul. First of all, there need to be fixed costs; no more letting Big Pharma set the costs. Although I do believe in free enterprise, the ability to enrich oneself through work, etc., I do believe there is a fundamental problem with an industry set it's own prices. What happened to competition? Secondly, the current system is horribly inefficient. My stepfather is a doctor, and he spends as much, and often more, time doing paperwork as he does providing patient care. Also, with the multitude of insurance providers, there is far more paperwork involved there then need be; if there is a single payer, ie, the government, then there need be only one form used; a single, universal bill. That would lower costs. And, the way hospitals are run is inefficient; doctors are expected to spend only about 15 minutes per patient, not nearly enough, causing primary care doctors to send patients to the ER who don't really need to be there, and who are then subsequently admitted to the hospital, leading to crowed ERs and hospitals. Third, and this ties in with my previous points, we need to cut out unnecessary tests and drugs. It seems to me that hospitals are encouraged to order expensive tests and drugs to gain reimbursement from the insurance companies, who then pass on the costs to consumers through higher rates and deductibles. If the government was footing the bill, it would be easier to focus on a lower bottom line without compromising patient care. I don't believe the current system allows that. Now, this is by no means an exhaustive list, nor am I an expert. However, I am an informed citizen, and I think these points would be a good place to start in reforming the health care system.
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lthurman
Jun 21, 09 7:58 AM CDT
I just love the no ability to sue...any so-called 'medical professional' from here or elsewhere however poorly trained can do whatever and have no comebacks. that part needs oversight, some rethinking, maybe.
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OriginalMike007
Jun 22, 09 3:03 AM CDT
Ultramarine, your whole post is filled with contradictions. First of all it is more than a little ironic that you say you believe in free enterprise right after advocating fixed prices. The you question "what happened to the competition?" followed quickly by proposing to eliminate all competition. Yes the current "system" is inefficient but it is very likely that ANY government program would be. I challenge you to name a single efficient government anything. The terms are practically oxymoronic. The government doesn't pay those bills the taxpayers do. The rest of your post has basically the same counter arguments.
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ksu92
Jun 20, 09 5:25 PM CDT
Screw Big Pharma. Name me one cure they've provided. Their business model is for us to pay through the nose if we want to live on their maintenance drugs. They ARE Drug Dealers and should DIAF. Reply
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Fondue
Jun 20, 09 5:37 PM CDT
Not only that, their drugs cause other problems. I think you have it pinned down to a T though. Patients are never really cured. I don't know about the DIAF thing.
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