NYT: As Drug Prices Climb, Democrats Find Fault With Medicare Plan: Windfall for drug companies

[DeepModem Mom]

As Drug Prices Climb, Democrats Find Fault With Medicare Plan
By ALEX BERENSON
Published: November 6, 2006

For big drug companies, the new Medicare prescription benefit is proving to be a financial windfall larger than even the most optimistic Wall Street analysts had predicted.

But those gains may come back to haunt drug makers if Democrats take control of Congress this week.

Democrats, who have long charged that the drug industry is profiteering at taxpayers’ expense, say they want to introduce legislation to revoke the law that bars Medicare from negotiating prices directly with drug makers like Pfizer for the medicines it buys.

Medicare now pays for drugs indirectly, through the private insurers that administer the prescription program — and those insurers typically pay higher prices than government agencies, like the Veterans Administration, that buy medicines directly from drug makers.

The government is expected to spend at least $31 billion this year on the drug benefit, which provides partial drug coverage for people over age 65, according to the federal agency that runs Medicare. Next year, the program is expected to cost almost $50 billion — almost 20 percent of overall American drug spending....

http://www.nytimes.com/2006/11/06/business/06drug.html

[williesgirl]

1. Where's the surprise here? Pay back to Pharmas campaign donations. recommended

[FernBell]

2. if there was ever a reason to throw the bums out, this is it

[indepat]

3. Hmmm! Proving to be a larger windfall for big pharma than anticipated

Who woulda' thunk it? Now isn't that special. :eyes:

[aquart]

4. The NYT sounds shocked.

My dying, World War II veteran, uncle just fell into the donut hole. He can't get the drugs from the VA because, he says, that takes time and these he always has to have immediately.

Remember how damn proud the Republicans were of this vile bill? How they planned to campaign on it? HOW?