Big Pharma made $711 bln overcharging seniors and disabled

The 11 largest drug companies have made $711 billion in profits in just a decade, largely due to overcharging Medicare, which does not seek out competitive prices and uses taxpayer funds to support Big Pharma.

Since Medicare is prohibited from purchasing drugs based on their cost, its prescription drug program has been making large payouts to drug companies that have overcharged the program for years, according to an analysis by Health Care for America Now (HCAN).

“There is nothing wrong with a company making profits – that’s what their supposed to do. But the drug industry’s profits are excessive as a result of overcharging American consumers and taxpayers,” writes Ethan Rome, executive director of HCAN, for the Huffington Post. “We pay significantly more than any other country for the exact same drugs.”

Rome notes that per capita drug spending in the US is 40 percent higher than in Canada, 75 percent greater than in Japan, and nearly 300 percent greater than Denmark.

The 11 largest global prescription drug companies have skyrocketed since the Medicare Part D prescription drug program was launched in 2006. The government health program enables seniors and the disabled to buy taxpayer-subsidized coverage for many of the most widely disseminated medicines. But Medicare is prohibited from negotiating prices with pharmaceutical companies or seeking out more cost-effective drugs, thereby costing seniors, the disabled and American taxpayers billions of dollars more than some argue the drugs are worth.

Some lawmakers have recently urged Congress to consider changing the law, for the sake of cutting unnecessarily high costs. Wisconsin Democratic State Senator Jon Erpenbach told Wisconsin Public Radio that his state could save $1.2 billion over ten years if Congress were to allow Medicare to partake in prescription drug negotiations.

“I understand that pharmaceutical companies are for-profit companies,” he told the station last week. “I understand there’s a lot of research and development that goes into the products that they produce. All of that being said, it shouldn’t cost us more to get that kind of pharmaceuticals we need to have.”

But according to the HCAN analysis, Big Pharma spends very little on research and development. Even though pharmaceuticals cite research as a costly part of its operations, the money spent on this is exaggerated, Rome claims. Drug companies spend 19 times more on marketing than on research and development – another reason why the industry reaps so much in profits each year, he adds.

US President Barack Obama has long promised to repeal the prohibition on Medicare negotiations with drug companies, but has so far failed to do so. The Veterans Administration currently negotiates drug prices, and manufacturers argue that letting Medicare take over the negotiations would make no difference to the industry. Supporters of drug manufacturers also continue to emphasize the high costs of research and development.

But the Congressional Budget Office found that if Medicare were to receive the same bulk-purchasing discounts on prescription drugs that state Medicaid programs receive, the federal government would cut its spending by $137 billion over 10 years.

“Our politicians give all kinds of tax breaks and subsidies to big corporations that don’t need them: Big Oil. Wall Street. Companies that ship our jobs overseas,” Rome writes. “Every gift to a special interest, including allowing Big Pharma to overcharge Medicare, is an expenditure of scarce tax dollars. That’s called wasteful spending.”

Source | RT

Find us here

Get news from the CSGLOBE in your inbox each weekday morning

The views and opinions expressed in this article are those of the authors/source and do not necessarily reflect the position of CSGLOBE or its staff.

Paid content

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

Leaked CDC document contradicts Pence claim that U.S. coronavirus cases ‘have stabilized’

Even as Vice President Mike Pence wrote in a Wall Street Journal op-ed published Tuesday that coronavirus...

Five bombshells about Trump from Bolton ‘s book

Excerpts from former national security adviser John Bolton ’s book about his time in the Trump administration...

What's New Today

Georgia House Votes To Allow Citizens To Abolish Police Departments In The State

The Georgia House backed an effort on Friday to dissolve the Glynn County Police Department and any...

Leaked CDC document contradicts Pence claim that U.S. coronavirus cases ‘have stabilized’

Even as Vice President Mike Pence wrote in a Wall Street Journal op-ed published Tuesday that coronavirus...

Five bombshells about Trump from Bolton ‘s book

Excerpts from former national security adviser John Bolton ’s book about his time in the Trump administration...

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

MOST READ

What Is Agenda 21? Depopulation of 95% of the World By 2030

Most people are unaware that one of the greatest threats to their freedom may be a United Nations program which plans to depopulate 95%...

Complete List of BANKS Owned/Controlled by the Rothschild Family

What’s the significance of having a central bank within a country and why should you concern yourself, your family and colleagues? Central banks are illegally...

Leaked CDC document contradicts Pence claim that U.S. coronavirus cases ‘have stabilized’

Even as Vice President Mike Pence wrote in a Wall Street Journal op-ed published Tuesday that coronavirus...

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

Putin: Russia Is Not Going to Attack Anyone

Complaining about Western “hysteria” surrounding repeated predictions of Russian military attacks on NATO member nations, Russian President Vladimir Putin sought to resolve two solid...

NSA Contractor Accused of Stealing Data Far More Sensitive Than the Snowden Docs

According to an indictment released Wednesday, the information stolen by Harold Martin, a former NSA contractor who was arrested in August of last year,...

Billionaire Banker David Rockefeller Dies Aged 101

New World Order kingpin and globalist billionaire tyrant David Rockefeller has been confirmed dead. Rockefeller was the last surviving grandson of John D. Rockefeller, the...

In 1974 Carl Sagan Sent This Message Into Space: In 2001 We Received This Response

In 1974, a broadcast (known as the “Arecibo” message) put together by Carl Sagan and colleagues was sent into space via radio waves at...

Quantum Computers – A Supercomputer That Can Correct Itself

Quantum PCs must defeat the test of distinguishing and amending quantum errors, before they can satisfy their guarantee of filtering through a huge number...

Retired American Bishop Explains How The Church Invented Hell and What Religion is Really Used For

Religion is a controversial topic, and I’d like to preface this article by saying that it is not my aim to belittle or diminish...

The Reality of Chemical Terrorism In Our Food

Is it really that hard for most people to believe that we are being assaulted on a daily basis by chemical terrorism? Genetically modified...