Government

Controlling drugs prices; sure, but let’s consider the consequences

Before you start criticizing Trumps attempt at lowering drug prices, consider this, its consequences and what you are comfortable with.

Drug prices in the US are where they are in part because of the following.

When you squeeze a ballon it bulges elsewhere or if you squeeze too hard, it pops. There may be room to squeeze drug company profits, but let’s be sure that doesn’t also mean cutting our access to more innovative drugs in the future.

There is much we can do to help manage drug prices before we “decide not to cover drugs whose prices they deem excessive.”

Source: NYTs 5-11-18

“Drug manufacturers in the United States set their own prices, and that is not the norm elsewhere in the world,” a spokesman for the 28-member European Union said on Friday. “E.U. member states have government entities that either negotiate drug prices or decide not to cover drugs whose prices they deem excessive. No similar negotiating happens in the U.S.”

Dr. Mitchell Levine, the chairman of Canada’s Patented Medicine Prices Review Board, which reviews prices to ensure they are not excessive, said in an interview, “With our price regulations, drug companies are still making profits — just lower profits than in the United States.

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1 reply »

  1. In the world of make believe, I wish that the US did not pay for the world’s R&D and that the drug companies would lower US prices accordingly. I wish that the FDA did their job. There is no reason to have massive class action lawsuits for “approved” drugs and devices that are driving up costs. Lawyers should not be the ones getting bad drugs off the market because they should never have been on the market. And while I am dreaming, I wish that the drug companies were American owned and controlled again. My dreams may or may not lower prices, but I am sure it would restrict innovations.

    I never understood why the government does not own the patents for the drug research they fund through grants. They should follow Dr Salk lead. Of course the profits will shift from companies to colleges but the public needs would be met and large cost recovery would not be required through long patent protections.

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