Somehow, Big Pharma—quick, check your stock holdings before you read any more—managed to convince Congress and the president that these companies could not possibly provide a drug benefit for seniors which was the same as, for example, federal employees.

In fact, it was unlawful for anyone to negotiate prices.  Unlawful.

In one of the most egregious offenses in the continuing effort to contain health care costs, Big Pharma won, in some cases, 1000% increases in selected drug prices.

All of us could be profitable and look smart if 1000% profit was built in up front.

Reuters

“Prices for hundreds of brand-name drugs have soared since the beginning of the decade, especially those that treat depression, infections and heart disease, according to a U.S. government report on Monday.

‘The nonpartisan General Accountability Office said it found “extraordinary price increases” for 321 brand-name drugs, with prices jumping by 100 percent to 499 percent — and in a few cases by more than 1,000 percent. (Emphasis added)

“The number of drug price increases more than doubled from 2000 to 2008 with most drugs maintaining their higher prices over time, the investigative arm of Congress said. (Emphasis added)

“GAO’s findings came as lawmakers work to finalize Senate and House versions of legislation overhauling the nation’s healthcare system. Some critics say both proposals are too generous to the pharmaceutical industry and fail to do enough to rein in costs.”

Source:  Reuters, January 11, 2009