Drug Makers Raise Prices in Face of Health Care Reform

[dtotire]

Drug Makers Raise Prices in Face of Health Care Reform





By DUFF WILSON
Published: November 15, 2009

Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years.
In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.

The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year.

Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.

“When we have major legislation anticipated, we see a run-up in price increases,” says Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota. He has analyzed drug pricing for AARP, the advocacy group for seniors that supports the House health care legislation that the drug industry opposes.


more:
http://www.nytimes.com/2009/11/16/business/16drugprices.html?_r=1&hp

[nykym]

1. In other words

we are manipulating the market to achieve the large scale profits we are entitled to. Hey we learned it from the hedge fund manipulators.

[valleywine]

2. The recent credit card bill and the raising of prices SHOULD be a clue

to the WH and congress of what WILL and IS happening!!

[Skittles]

3. they know what is happening

they help it happen

[valleywine]

4. ...

:mad: