BenefitsAll

I'm Siding With Big Pharmaceutical Companies On This One Point


Since the release of the groundbreaking article and book, Bitter Pill, there's been no shortage of articles about people struggling to pay health insurance bills. Meanwhile, health insurers, their lobbyists and politicians have decided that the main perpetrator of this price gouging is the pharmaceutical industry. And now these groups are fighting it out with Big Pharma in the media and in legislative houses around the country.

One of the latest legislative fights is taking place in my backyard. This fight is between the Virginia Association of Health Plans and the Pharmaceutical Research and Manufacturers Association. The Virginia Association of Health Plans is trying to get the Virginia General Assembly to pass legislation that would require pharmaceutical companies to publish the cost of developing, manufacturing and marketing of drugs that cost $80,000 or more for a single course of treatment, according to
The Roanoke Times.

And this morning, February 4, 2016, the
Full House Committee on Oversight and Government Reform is holding a hearing to discuss the very same price increase and transparency issues being debated in the Virginia General Assembly.

Why Just Big Pharma...?

Granted some pharmaceutical companies walked right into this fight when they started
raising the prices of little known and little used drugs by several 1,000s percent. And let's not forget the $80,000 per treatment new hepatitis C drugs. But pharmaceutical companies are right when they say, "why are you singling us out?" "We are not the biggest source of health care costs." And they are not. Doctors and hospitals grab more of our health care doctors than any other group. However, doctors, hospitals and insurance companies claim that their high prices reflect the high prices they have to pay to purchase prescription drugs, but that's not entirely true.

Look, I'm all for legislation requiring pharmaceutical companies to justify their prices by showing what they pay for advertising and marketing, research and development, manufacturing and distribution. I'm also sick of their innovation justification argument, which, ironically they are being asked to prove. However, we have to ask the same transparency and price justifications of all segments of the health care industry. That means medical providers and professionals, hospitals and health care equipment and services. By focusing just on Big Pharma's sins, opponents are giving other health care industry groups a pass, as well providing Pharma a legitimate excuse to ignore calls for transparency.

And at least Big Pharma is honest in saying that they are raising prices to meet shareholder expectations. It will be very interesting to see how lawmakers address that point.

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