Posted on 03/30/2017 7:21:01 AM PDT by Rockitz
When I first started becoming aware of how sleazy, parasitic and corrupt the U.S. economy was, I only had expertise in one industry, financial services. Coming to grips with the blatant criminality of the TBTF Wall Street banks and their enablers at the Federal Reserve and throughout the federal government, I thought this was the main issue that needed to be confronted. What I’ve learned in the years since is pretty much every industry in America is corrupt to the core, more focused on sucking money away from helpless citizens via rent-seeking schemes versus actually producing a product and adding value. Unfortunately, the healthcare industry is no exception.
Today’s post zeros in on a particular slice of that industry. A group of companies known as Pharmacy Benefit Managers, or PBMs. Companies that seem to extract far more from the public than they give back. It’s a convoluted sector that is difficult to get your head around, which is why we should be thankful that David Dayen wrote an excellent piece on the topic recently. What follows are merely excerpts from his lengthy and highly informative piece, The Hidden Monopolies That Raise Drug Prices. I strongly suggest you read the entire thing.
(Excerpt) Read more at zerohedge.com ...
http://prospect.org/article/hidden-monopolies-raise-drug-prices-0
How about a reform that is market oriented. All doctors/medical providers/drug companies are to have clear pricing charts. And in regards to drugs, I’d like the law to allow re-importation of drugs from other countries. It’s obscene that Americans pay higher prices for the same drugs that are sold in Canada or any other country. Maybe there is a case to be made to sell a drug at cost for poor countries. That does not hold up however vs. what the rest of the first world is paying for drugs ....which is cheaper than what we pay here.
http://equitablegrowth.org/equitablog/should-read-angus-deaton-rent-seeking/
You may want to read that. I agree with Deaton that rent seeking is everywhere, and that it corrupts the entire political economy. Big business is happy to pay the entry fee to politicians and administrators, it’s just another cost in a large pile of them, as long as they get their predictable, extractable share. President Trump is not in office due to contributions from rent seekers, but it damn sure seems like everyone else involved sure was. It’s never going to get better unless he succeeds. I wish everyone would understand that. The overall trends are important, not the individual line item issues.
As a swamp dweller I watch the machinations of the rent-seekers on a daily basis. Take off and nuke it from space. It is the only way to be sure.
Thanks for the link...
Very interesting.
It's not hard at all to "borrow" some content, add a few sentences of your own and publish it.
Read the original content from The American Prospect here.
Zero Hedge usually is not deleted sight unseen by the mods. I wasn’t so sure about The American Prospect.
PS. I did provide the link in my post. Not sure why it wasn’t automatically hyperlinked as they usually are?
Last time I checked, no one was forcing me to buy but a few products and services. I am forced to buy health and auto liability insurance. Far as I can tell, I am not forced to buy any drugs. Prices are set by demand and what people are willing to pay. Most people pay more for cable TV. My biggest expense is taxes—everything else pales in comparison. If I think I’m getting ripped off, I just walk away.
Cheaper by how much and of what quality. Most of the drugs are developed here in the US. I understand that the knockoff drug market is cheaper. Drug development is a very costly process and most companies make what about 7-8% profit. This country was built on free enterprise, not socialism.
Maxim 20. If you’re not willing to shell your own position, you’re not willing to win.
7-8%? Try again... consistently almost 10 times that.
For Example.
https://ycharts.com/companies/PFE/gross_profit_margin
Hello Andy, been a long time since I’ve bumped into you. Nice!
>>>Cheaper by how much and of what quality. Most of the drugs are developed here in the US. I understand that the knockoff drug market is cheaper. Drug development is a very costly process and most companies make what about 7-8% profit. This country was built on free enterprise, not socialism.<<<
Are you telling me you are unaware that you can buy the exact same drugs....same manufacturers in other countries for substantially less money than in America?
Also, are you trying to educate me on the history of free enterprise in America?
We do not have a free market for healthcare....so why do you talk down to a fellow poster?
And to my point about drugs, I was shocked to learn how a pharmaceutical company had priced a drug that is nothing but a combination of two OTC drugs in a time release pill. The name is Diclegis and my wife used it for nausea due to pregnancy. It’s a combo of a combination of doxylamine and pyridoxine. Doxylamine is an OTC sleep aid. You can buy a box of generic sleeping pills for $10. Pyriodxine is vitain B6. The only thing fancy about the diclegis is having it set to a pill to release the medicine over time, instead of all at once. And that is what I assume makes this drug get a patent.
Cost here in America was over $550 for 100 pills. A search of a Canadian pharmacy shows it to be $170. That’s my issue. Pharma sells the same stuff here at the high full retail price. Other countries that play hardball refuse and their people still get the same drugs. I say let’s re import the drugs.
Please, net profit is what counts. You conveniently left out expenses, costs of operations, dividends to shareholders etc. If these companies were making that kind of money, Pfizer wouldn’t be a measly $35 a share and I would 10,000 shares. Being anti business is not a conservative value.
Are you telling me you are unaware that you can buy the exact same drugs....same manufacturers in other countries for substantially less money than in America?
Also, are you trying to educate me on the history of free enterprise in America?
We do not have a free market for healthcare....so why do you talk down to a fellow poster?
And to my point about drugs, I was shocked to learn how a pharmaceutical company had priced a drug that is nothing but a combination of two OTC drugs in a time release pill. The name is Diclegis and my wife used it for nausea due to pregnancy. It’s a combo of a combination of doxylamine and pyridoxine. Doxylamine is an OTC sleep aid. You can buy a box of generic sleeping pills for $10. Pyriodxine is vitain B6. The only thing fancy about the diclegis is having it set to a pill to release the medicine over time, instead of all at once. And that is what I assume makes this drug get a patent.
Cost here in America was over $550 for 100 pills. A search of a Canadian pharmacy shows it to be $170. That’s my issue. Pharma sells the same stuff here at the high full retail price. Other countries that play hardball refuse and their people still get the same drugs. I say let’s re import the drugs.
No, I did not write that. Are you aware of knockoff products? Are you aware of the costs added by the legal profession’s take here in the U.S.? Once drugs are off patent generics get cheaper. If I may offer advice, pregnant women should avoid all drugs because most of them cross the placental barrier. If you can go to another country and buy the drugs, I have no problem with that. I think people should be free to buy or not. As I stated in another post, most of these drug companies make a net profit of around 7-8%, which to me, is not unreasonable.
I’m sorry for the disrespect. I would probably enjoy knowing you.
I feel like one of those surrounded special forces guys calling down a B52 raid on his own position. Still the exchange rate is about 1 Million to one so it is a worth sacrifice.
Still well over double what you indicated for most big pharm players.
https://ycharts.com/companies/PFE/profit_margin
So, buy the company. You do understand a good portion of net profit goes back to investors as dividends and capital gains, right? Another portion of profit goes to invest in research and development of new drugs (R & D). Finally, if you are uncomfortable with the profit they make its pretty simple to boycott the company.
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