Drug prices coming down for landing

9 mins read

Drug prices coming down for landing

The Inflation Reduction Act lets Medicare negotiate lower prices for high-cost drugs for the first time. Companies that refuse to negotiate will be subject to an up to 95% sales tax on that drug. The bill includes a ceiling on the negotiated price of the specified drug. This is a policy Democrats have attempted to enact, over objections from the pharmaceutical industry, for many years. The provisions are expected to save $288 billion over 10 years according to analysis by the CBO.

Drug prices come down for landing with the Inflation Reduction Act.

Drug prices out of reach. Big Pharma share prices soaring and execs making millions. Big Pharma spending millions on lobbying to protect their profits. Republicans vote to price drug caps to please Big Pharma donors. Follow the money to see how Democrats are bring drug prices down for landing despite headwinds from Big Pharma lobbying and Republican opposition.

Follow the (drug) money

Drug prices come down thanks the Inflation Reduction Act that President Biden signed despite Big Pharma lobbying and Republican opposition
Share this infographic freely with this link or as a GIF

Prescription drug pricing reform

The Inflation Reduction Act lets Medicare negotiate lower prices for high-cost drugs for the first time. Companies that refuse to negotiate will be subject to an up to 95% sales tax on that drug. The bill includes a ceiling on the negotiated price of the specified drug. This is a policy Democrats have attempted to enact, over objections from the pharmaceutical industry, for many years. The provisions are expected to save $288 billion over 10 years according to analysis by the CBO.

The bill caps out-of-pocket drug costs at $2,000 a year for Medicare beneficiaries, starting in 2025. It also caps insulin costs for people on Medicare at $35 a month. The original proposal called for a cap on both Medicare and private insurance patients, but Republicans voted against extending protection to those on private plans. – Investopedia

The Congressional Budget Office projects the measure would save the U.S.—which spends far more on prescription drugs than other wealthy nations—$290 billion over 10 years.

BIG PHARMA MAKES A KILLING (pun intended)

Price Increases Outpaced Inflation for Half of all Drugs Covered by Medicare in 2020. Half of all Part D covered drugs (50% of 3,343 drugs) and nearly half of all Part B covered drugs had price increases greater than inflation between July 2019 and July 2020. Kaiser Family Foundation

Price Increases Outpaced Inflation for Half of all Drugs Covered by Medicare in 2020. Half of all Part D covered drugs (50% of 3,343 drugs) and nearly half of all Part B covered drugs had price increases greater than inflation between July 2019 and July 2020. Kaiser Family Foundation
Drug prices increased faster than inflation

Big pharma greed kills

Ocasio-Cortez lays into drug company CEO, telling him to his face that his greed is killing people. AOC has railed against the CEO of a drug company and by extension the private healthcare industry. She argued that health is treated like a commodity by drugs companies, and that “people are dying” as a result. She made the comments during a congressional hearing involving Daniel O’Day, thxe CEO of drug company Gilead. She contended that companies like Gilead are taking advantage of sick people. Using an iPhone as an example, she said: “This is a commodity”.

She went on to explain the economics of having an option when it comes to choosing a product: When we talk about economics there’s something known as a demand curve, with elasticity. And with every other commodity you can say ‘How much is this phone worth to you?’. And you can say ‘$100, $200’. You can buy a Nokia phone. You can not have a phone at all. But healthcare, she argued, is not like this. She insisted. But you cannot ask the question ‘how much will you pay to be alive? How much will you pay to live?’. Because the answer is everything. The answer is, you will pay $10, you will pay $1,000, you will go into debt. You will do anything to live. – The Canary

@AOC asked this pharma exec why a life-saving HIV drug costs nearly $2,000 in the U.S. and $8 in Australia

Pfizer CEO makes over $11 million annually
Source: Yahoo Finance

Big Pharma spends millions to lobby to keep prices and profits high

Big Pharma Has Spent $147 Million to Kill Lower Drug Prices During Pandemic. “The big drug companies spend so massively lobbying to keep the market rigged in their favor and seniors at their mercy, including many literally choosing between food and medicine,” said Accountable.US.

The five largest pharmaceutical companies in the United States have spent nearly $150 million lobbying against Democratic proposals to lower the country’s increasingly outlandish drug prices. The analysis by the corporate and government watchdog group Accountable.US estimates that Johnson & Johnson, Eli Lilly, Pfizer, AbbVie, and Merck poured a combined $147.3 million into lobbying Congress since 2020.

“Meanwhile, major pharmaceutical CEOs raked in over $292.6 million” as “their companies saw skyrocketing profits,” the report notes. “Big Pharma, like many other industries, knows they cannot justify raising prices so high at the same time they boast of excessive profits, generous CEO bonuses, and huge shareholder payouts,” said Accountable.US spokesperson Liz Zelnick. “That is why the big drug companies spend so massively lobbying to keep the market rigged in their favor and seniors at their mercy, including many literally choosing between food and medicine.” – Common Dreams

Big pharma spends a fortune on lobbying to keep drug prices high.
Source: Open Secrets

Millions spent to keep drug prices high

Pharmaceutical Research and Manufacturers of America (PhRMA)—the drug industry’s trade group—has denounced the proposal, decrying its “sweeping government price-setting policies.” Last year, Big Pharma spent heavily to weaken an earlier Democratic drug pricing plan that was ultimately scrapped thanks in large part to Sen. Joe Manchin (D-W.Va.). While it’s despised by the pharmaceutical industry—whose lobbyists on Capitol Hill outnumber members of Congress—the idea of allowing Medicare to directly negotiate drug prices is broadly popular with the U.S. public, garnering more than 80% support across party lines in some polling.

Republicans vote against insulin price caps to please their big pharma donors

Republicans vote against insulin price caps to please Big Pharma donors

The Senate passed a sweeping budget package Sunday intended to bring financial relief to Americans, but not before Republican senators voted to strip a proposal that would have capped the price of insulin at $35 per month for many patients. A proposal that limits the monthly cost of insulin to $35 for Medicare patients was left untouched. But using a parliamentary rule, GOP lawmakers were able to jettison the part of the proposal that would apply to privately insured patients.

Lowering the price of drugs such as insulin, which is used by diabetics to manage their blood sugar levels, is broadly popular with voters, polling shows. Senate Democrats denounced Republicans for voting against relief for Americans with private insurance struggling to pay for the lifesaving drug. More than 30 million Americans have diabetes, and about 7 million require insulin daily to manage their blood sugar levels. – Washington Post


TakeAway:
 Vote to make drug prices and healthcare affordable. Vote Democrat.


Deepak
DemLabs

DISCLAIMER: ALTHOUGH THE DATA FOUND IN THIS BLOG AND INFOGRAPHIC HAS BEEN PRODUCED AND PROCESSED FROM SOURCES BELIEVED TO BE RELIABLE, NO WARRANTY EXPRESSED OR IMPLIED CAN BE MADE REGARDING THE ACCURACY, COMPLETENESS, LEGALITY OR RELIABILITY OF ANY SUCH INFORMATION. THIS DISCLAIMER APPLIES TO ANY USES OF THE INFORMATION WHETHER ISOLATED OR AGGREGATE USES THEREOF.

How to use the Drug Prices Come Down For Landing map
Corporate donors pay Republicans to weaken regulations
Big pharma profits surge as they donate to Republicans to keep drug prices high
Big pharma pays Republicans to keep drug prices high
President Biden proposes cutting the price of prescription drugs.

Read in browser »

Reposted from Democracy Labs with permission.


DemCast is an advocacy-based 501(c)4 nonprofit. We have made the decision to build a media site free of outside influence. There are no ads. We do not get paid for clicks. If you appreciate our content, please consider a small monthly donation.


Democracy Labs is a hub for ongoing technology and creative innovation that serves progressive campaigns and organizations at the national, state, and local levels.

Our focus is on long term, sustainable and affordable solutions. An approach that is longer than an election cycle, and isn’t purely dependant on volunteers, can enable more qualified candidates to run for office and for more issue groups to bring about positive social change.

Democracy Labs is a project of the Tides Advocacy Fund.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Story

RockdaleDems Host Warnock For Georgia Rally

Next Story

Lean Left Vermont Weekly Action Update!

Latest from Explainer

How Fascism Works

How Fascism Works Fascist politics is spreading in America. Can you spot it?

%d bloggers like this: