Posted on 11/22/2014 11:34:59 AM PST by knak
Although Generic Drugs have been considered a cheap alternative to brand drugs, the recent price increase has triggered a Senate investigation.
Several low-price drug manufactures were questioned by members of the Congress in October, about the changes that have happened in the last 18 months, in terms of price. The Congress meeting happened as a result of several price complaints from long patients as well as pharmacists and physicians.
Some of the low-cost generic drugs’ prices have risen with up to 8,000%. The huge increase was investigated at a Senate hearing, on Thursday. It was reported that three pharmaceutical companies refused to take part at the hearing.
Although there are many forces that influence prices, like drug ingredient shortages, production slowdowns or industry consolidation, experts have yet to investigate if the price change of generic drugs can be backed up or not.
The leaders of the ongoing investigation are Vermont Senator, Bernie Sanders and Maryland Rep, Elijah Cummings.
Records revealed that the average price for more than 1,200 low cost generic drugs rose by 400 percent over a period of one year (from July 2013 to July 2014), as according to Sanders’ statement. If we turn the percentages into more understandable figures, the drugs have become unaffordable for one in four Americans.
One example of a generic drug that has suffered a huge price increase is Albuterol Sulfate, a drug needed by asthma patients. The drug used to be commercialized at the price of $11 for two tablets last year. Now, the drug is currently being sold at the price of $434 for the same two tablets. Another example is Doxycycline Hyclate, an antibiotic sold in bottles. People used to be able to buy at the price of $20 in October 2013. The same bottle costs now nearly $1,849.
Senator Bernie Sanders underlined the exact problem in one of his statements, declaring:
“Drug companies have seen the opportunity to make a whole lot of money and they are seizing that opportunity. This is greed at work in the pharmaceutical industry”.
Given the fact that the investigation is still going, no one can assure the patients if the prices will lower or at least stop increasing. The price increases were determined by the Healthcare Supply Chain Association.
New physician owned hospitals are banned and expanding the existing ones is also banned. That will make it harder to “work with doctors” eventually.
Because They Can.
Jeepers!
1. Hey, doesn’t dah guvmint also buy all d’at d’ere pill stuff for dah vet’rans, too?
2. pretty good, d’at d’ere elijah fella is one of d’em Communists.
T’ree. Don’t hear nuthin’ mo’ ‘bout all d’at VA stuff, do ya?
Huh?
dear nik,
you don’ said, “huh?”
“huh”, to what? to whom? why? how? where? Ah got’s dah when part!
What yo’ sayin’ “huh”, ‘bout?!?
don’ ya’s git it? don’ ya’s t’ink ‘bout what all d’at means?
don’ never say d’at “huh” t’ing b’for ya’s put ya’s brain to woik! Don’ make ya’s look too good, ya know?
Possibly there are one or two other factors in play.
These are some factors I have observed with two different medicines I was taking that at one time were manufactured by several generic companies:
1. You can make more money selling out to Big Pharma than you can by running your generic drug factory.
2. Your factory has to be licensed and can be closed down for inspections. If you are undercutting a big drug company with a cheaper alternative you might just find that regulators are giving you an unusually hard time.
The big money in drugs at least provides the opportunity for big corruption. When a company is spending a billion dollars to develop and market new drugs, some of that money is going to go toward eliminating the competition. And there are lots of ways to go about that.
One can never be sure whether either of these two dinosaurs isn't just toting water or running a distraction play. They are both enemies of the United States, on this side of last week.
I don’t use Walmart for prescription drugs anymore. I had problems with certain generic heart medications several times. The drug I was on had a 45 day half life — so the strength had to be significantly off on the downside for me to have the very problem the drug was supposed to prevent.
That aside, it would be nice to see the drug prices in various countries. I remember reading stories and news reports saying that prices to the U.S heavily subsidize prices to other countries.
Increased demand (because of obamcare), not enough capacity.
Because there's been alot of consolidation in the drug industry. There used to be like 15 makers for Levothyroxine, a common generic thyroid drug that I take and until recently cost me less than $5 for a 30 day supply. My last refill cost me $25 and when I asked my pharmacist why the price hike he told me about the consolidation in the drug industry.
There are now perhaps 3-5 drug makers that make levothyroxine and since there's a lot less competition, the price has gone up.
My own brother in law (sisters husband) is a drug rep for Merck. He also told me how the big drug companies are buying up the smaller drug companies, cornering markets on common generic drugs and driving prices up. What's happening in the drug industry is the same thing as what happened to oil companies and refineries in the 1990's through 2008. Fewer, bigger oil companies and fewer, bigger refineries mean less competition and higher prices for consumers.
It's happened in oil/gasoline, it's happening in the drug industry, and it's happening in farming with large commercial farms crowding out smaller farmers and driving prices up.
We no longer have free market capitalism and competition folks. It's been replaced by Obama style Crony Capitalism. We're all F'ed because of it too. Everything's going up.
Heads up. This is the antibiotic that Pate and I take. I don't know how big of a bottle, or what dosage, is being referred to above. However, I do know that when I filled this script I was quite surprised that a 30-day supply was $45. That seemed nuts to me.
Like any thing else, if you can’t afford it, don’t buy it.
Many nations especially Latin Amercia has cheaper costs for drugs...do we subsidize? I don’t know.
Some RA drugs will go up more than a 100% in next few months...you can look for coupons online from drug stores like CRS, Walgreens, and print out,then ask doctor to send a prescription to them if Walmart or other places have hiked price...
There are drug supply constraints across therapy classes globally.
>>do we subsidize?
Indirectly, yes, the US subsidizes drugs for the rest of the world.
ok
Damn. Sounds like crony capitalism to me.
In other words, since Obamacare kicked in.
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