Why does the USA pay the most for drugs invented here?
- Thread starter anonymous
- Start date
-
- Tags
- None
We subsidize the entire industry and their stock buybacks and bonuses. The spending is unsustainable, and that's a hard truth our industry can't stomach.
Our government isn’t paying that much more for drugs. It’s actually less. We have penny pricing and uncapped amp plus the fcs keeps prices low. The HTA confirms it.
"Pricing" is just the bait in the industry switch. Nobody really cares about the prices. It is all about cost. (By government it includes Part D, Medicare Advantage, Medicare, Medicaid, Veterans.)
The true costs to America for drugs are the most by far of any developed Country, on a drug to drug, patient to patient basis. Adding up all of the transactions, sales, out of pockets, deductibles, copays, payor reimbursements, and the costs of drugs that do not work or all that well, even after factoring all the rebates and discounts and copay programs and free drugs, America spends the most per capita (cost basis) and it is clear as day (impossible to deny).
Why?
For profit publicly traded Middlemen markups (PBM fees) and provider markups (Hospital and physician buy and bill). No other country lets multiple layers of stakeholders make so many profits on the same drug vials. And to make it worse, the model incentivizes drug inflation as all the publicly trade skimmers constantly raise costs to meet earnings growth goals. A single vial can have 3-5 or more separate "purchases and sales". That is insane.
The solution is easy: (1) pay providers more for their professional and facility services, what they deserve for hard work, (2) end drug markups, and (3) limit the profit for the sale of the drug itself to the manufacturers and their distributors. Sure, the pie would be smaller, and there would be less R&D pump n dump schemes, but it is sustainable financially and good for the Country. It may be politically infeasible but what else isn't?
#truthtopower