The move to prevent Medicare from negotiating with Big Pharma and giving that job to for-profit companies was a stroke of greed-genius that would have made Gordon Gecko giddy with pride.
People in the United States pay the highest drug prices in the world. By far. But for many this situation seems to be totally normal and we’re just resigned to it. There are cracks in the windows of this perception with some people, myself included. Having had to purchase an expensive drug for asthma while in South Africa only to be gobsmacked by the fact that it was less than one tenth the American price, and from the same drug company, is one such crack. It begs the question: Why is it legal to literally steal money from customers with excessive profits—especially when this price gouging really amounts to extortion?
Lobbyists Made It Legal
Pharma lobbyists have flooded both sides of the political aisle with money and direct influence on legislation. As we are seeing today with Congress on the cusp of passing an infrastructure bill that would include a restoration of the right for Medicare to negotiate drug prices, a pharma influenced Senator is standing as a roadblock. But that is just today.
What created this problem? One key factor is the Medicare Modernization Act of 2003, signed into law by George W. Bush. This “modernization” of Medicare included the now infamous Part D drug “benefit.” A poison pill clause was slipped into this bill that prevented Medicare from wielding its massive negotiating power on behalf of 60 million people. The power to negotiate drug prices was assigned to Pharma Benefit Managers or PBMs. These are private, for-profit, companies that are supposed to negotiate prices on behalf of consumers.
Who are the PBMs? The top three are: CVS, Express Scripts (Cigna) and OptumRX (United Health). Can you say, “Conflict of interest?”
Remember always that these are for-profit companies. That means that their primary concern, making money for their shareholders, is in direct conflict with their purported job of negotiating better prices for consumers. And in a monumental, class-by-itself, grandstand of double dealing, the biggest PBM is CVS which is also a national pharmacy chain.
I wrote in another short piece some time back about getting an antibiotic prescription filled. CVS offered a “discounted” price of $125 for 7 pills of a generic antibiotic, Levequin. I ended up getting it for $21 from a small neighborhood pharmacy. And those folks made a profit. Multiply the massive excess profit CVS was trying to gouge on that one transaction by a million or so and you get the idea of the river of money being generated in this so-called middleman negotiating position.
That bottom line is the transfer of Medicare’s negotiating power to private interests was never in the public’s interest. This was foisted on us by lobbyists. Of course this was sold with the overused idea that “government is just not as efficient a private companies.” This is a constant chant from special interests that want to take over what they see as massively profitable sectors. “Why should the government do for free what we can make money on?” is the actual thought.
The result is the unrestrained greed of the American pharma cartels which has given us $600 EpiPens, $700 per month insulin prices, $54,000 Hep C treatments and the like.
The Vacuum Hose in the Cookie Jar
The pharma industry is by far the largest spender on lobbying both houses of Congress and on both sides of the aisle. And they have been very successful. The move to take Medicare’s job and give it to for-profit companies was a stroke of greed-genius that would have made Gordon Gecko giddy with pride. This gave these companies the ability to siphon money out of the pockets of literally any American in need of drugs to maintain or even save their lives.
The truly evil part of this situation is that there is no check or balance to how far these companies can go with their price gouging. Drug addicts hooked on opiates will commit all manner of crimes to get money for another dose to keep from feeling sick. What about the patients who are only addicted to staying alive? What will they do? To what lengths will they go to pay for their insulin? “Your Money or Your Life” is how this article starts and we are still there.
The $3.5 trillion infrastructure bill is being fought tooth and nail by vested interests in the Senate. (Let’s clarify that. Being fought by all Republicans and two corrupt Democrats, one of whom, Kyrsten Sinema, is a happy recipient of pharma lobby money.) Included in this bill is a restoration of the right to negotiate drug prices by Medicare. Everyone who has ever had to fill a prescription has a personal interest in seeing this make it through the gauntlet of lobbying hatchet men. Lives actually depend on it.
We need to prevail upon the elected officials involved that their Oath of Office binds them to honor their commitment to representation of their constituents, not the lobbyists that leave slug trails of money in their offices.
Marty Kassowitz is co-founder of Factkeepers. As founder of Interest Factory and View360, he brings more than 30 years experience in effective online communications, social media management, and platform development to the site. He is a writer, designer, editor and long time observer of the ill-logic demonstrated by too many members of the species known as Mankind. After a long history of somewhat private commentary on a subject he totally hates: politics, Marty was encouraged to build this site and put up his own analyses as well as curate relevant content from other sources.
Help Support Factkeepers!
{"id":null,"mode":"form","open_style":"in_place","currency_code":"USD","currency_symbol":"$","currency_type":"decimal","blank_flag_url":"https:\/\/factkeepers.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/flags\/blank.gif","flag_sprite_url":"https:\/\/factkeepers.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/flags\/flags.png","default_amount":500,"top_media_type":"none","featured_image_url":false,"featured_embed":"","header_media":null,"file_download_attachment_data":null,"recurring_options_enabled":true,"recurring_options":{"never":{"selected":true,"after_output":"One time only"},"weekly":{"selected":false,"after_output":"Every week"},"monthly":{"selected":false,"after_output":"Every month"},"yearly":{"selected":false,"after_output":"Every year"}},"strings":{"current_user_email":"","current_user_name":"","link_text":"Leave a tip","complete_payment_button_error_text":"Check info and try again","payment_verb":"Pay","payment_request_label":"Factkeepers.com","form_has_an_error":"Please check and fix the errors above","general_server_error":"Something isn't working right at the moment. Please try again.","form_title":"Help Support Factkeepers","form_subtitle":null,"currency_search_text":"Country or Currency here","other_payment_option":"Other payment option","manage_payments_button_text":"Manage your payments","thank_you_message":"Thank you for being a supporter!","payment_confirmation_title":"Factkeepers.com","receipt_title":"Your Receipt","print_receipt":"Print Receipt","email_receipt":"Email Receipt","email_receipt_sending":"Sending receipt...","email_receipt_success":"Email receipt successfully sent","email_receipt_failed":"Email receipt failed to send. Please try again.","receipt_payee":"Paid to","receipt_statement_descriptor":"This will show up on your statement as","receipt_date":"Date","receipt_transaction_id":"Transaction ID","receipt_transaction_amount":"Amount","refund_payer":"Refund from","login":"Log in to manage your payments","manage_payments":"Manage Payments","transactions_title":"Your Transactions","transaction_title":"Transaction Receipt","transaction_period":"Plan Period","arrangements_title":"Your Plans","arrangement_title":"Manage Plan","arrangement_details":"Plan Details","arrangement_id_title":"Plan ID","arrangement_payment_method_title":"Payment Method","arrangement_amount_title":"Plan Amount","arrangement_renewal_title":"Next renewal date","arrangement_action_cancel":"Cancel Plan","arrangement_action_cant_cancel":"Cancelling is currently not available.","arrangement_action_cancel_double":"Are you sure you'd like to cancel?","arrangement_cancelling":"Cancelling Plan...","arrangement_cancelled":"Plan Cancelled","arrangement_failed_to_cancel":"Failed to cancel plan","back_to_plans":"\u2190 Back to Plans","update_payment_method_verb":"Update","sca_auth_description":"Your have a pending renewal payment which requires authorization.","sca_auth_verb":"Authorize renewal payment","sca_authing_verb":"Authorizing payment","sca_authed_verb":"Payment successfully authorized!","sca_auth_failed":"Unable to authorize! Please try again.","login_button_text":"Log in","login_form_has_an_error":"Please check and fix the errors above","uppercase_search":"Search","lowercase_search":"search","uppercase_page":"Page","lowercase_page":"page","uppercase_items":"Items","lowercase_items":"items","uppercase_per":"Per","lowercase_per":"per","uppercase_of":"Of","lowercase_of":"of","back":"Back to plans","zip_code_placeholder":"Zip\/Postal Code","download_file_button_text":"Download File","input_field_instructions":{"tip_amount":{"placeholder_text":"How much would you like to donate? You can change this amount to anything you would like.","initial":{"instruction_type":"normal","instruction_message":"How much would you like to donate? You can change this amount to anything you would like."},"empty":{"instruction_type":"error","instruction_message":"How much would you like to donate? You can change this amount to anything you would like."},"invalid_curency":{"instruction_type":"error","instruction_message":"How much would you like to donate? You can change this amount to anything you would like."}},"recurring":{"placeholder_text":"Recurring","initial":{"instruction_type":"normal","instruction_message":"How often would you like to donate this?"},"success":{"instruction_type":"success","instruction_message":"How often would you like to donate this?"},"empty":{"instruction_type":"error","instruction_message":"How often would you like to donate this?"}},"name":{"placeholder_text":"Name on Credit Card","initial":{"instruction_type":"normal","instruction_message":"Enter the name on your card."},"success":{"instruction_type":"success","instruction_message":"Enter the name on your card."},"empty":{"instruction_type":"error","instruction_message":"Please enter the name on your card."}},"privacy_policy":{"terms_title":"Terms and conditions","terms_body":null,"terms_show_text":"View Terms","terms_hide_text":"Hide Terms","initial":{"instruction_type":"normal","instruction_message":"I agree to the terms."},"unchecked":{"instruction_type":"error","instruction_message":"Please agree to the terms."},"checked":{"instruction_type":"success","instruction_message":"I agree to the terms."}},"email":{"placeholder_text":"Your email address","initial":{"instruction_type":"normal","instruction_message":"Enter your email address"},"success":{"instruction_type":"success","instruction_message":"Enter your email address"},"blank":{"instruction_type":"error","instruction_message":"Enter your email address"},"not_an_email_address":{"instruction_type":"error","instruction_message":"Make sure you have entered a valid email address"}},"note_with_tip":{"placeholder_text":"Your note here...","initial":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"empty":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"not_empty_initial":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"saving":{"instruction_type":"normal","instruction_message":"Saving note..."},"success":{"instruction_type":"success","instruction_message":"Note successfully saved!"},"error":{"instruction_type":"error","instruction_message":"Unable to save note note at this time. Please try again."}},"email_for_login_code":{"placeholder_text":"Your email address","initial":{"instruction_type":"normal","instruction_message":"Enter your email to log in."},"success":{"instruction_type":"success","instruction_message":"Enter your email to log in."},"blank":{"instruction_type":"error","instruction_message":"Enter your email to log in."},"empty":{"instruction_type":"error","instruction_message":"Enter your email to log in."}},"login_code":{"initial":{"instruction_type":"normal","instruction_message":"Check your email and enter the login code."},"success":{"instruction_type":"success","instruction_message":"Check your email and enter the login code."},"blank":{"instruction_type":"error","instruction_message":"Check your email and enter the login code."},"empty":{"instruction_type":"error","instruction_message":"Check your email and enter the login code."}},"stripe_all_in_one":{"initial":{"instruction_type":"normal","instruction_message":"Enter your credit card details here."},"empty":{"instruction_type":"error","instruction_message":"Enter your credit card details here."},"success":{"instruction_type":"normal","instruction_message":"Enter your credit card details here."},"invalid_number":{"instruction_type":"error","instruction_message":"The card number is not a valid credit card number."},"invalid_expiry_month":{"instruction_type":"error","instruction_message":"The card's expiration month is invalid."},"invalid_expiry_year":{"instruction_type":"error","instruction_message":"The card's expiration year is invalid."},"invalid_cvc":{"instruction_type":"error","instruction_message":"The card's security code is invalid."},"incorrect_number":{"instruction_type":"error","instruction_message":"The card number is incorrect."},"incomplete_number":{"instruction_type":"error","instruction_message":"The card number is incomplete."},"incomplete_cvc":{"instruction_type":"error","instruction_message":"The card's security code is incomplete."},"incomplete_expiry":{"instruction_type":"error","instruction_message":"The card's expiration date is incomplete."},"incomplete_zip":{"instruction_type":"error","instruction_message":"The card's zip code is incomplete."},"expired_card":{"instruction_type":"error","instruction_message":"The card has expired."},"incorrect_cvc":{"instruction_type":"error","instruction_message":"The card's security code is incorrect."},"incorrect_zip":{"instruction_type":"error","instruction_message":"The card's zip code failed validation."},"invalid_expiry_year_past":{"instruction_type":"error","instruction_message":"The card's expiration year is in the past"},"card_declined":{"instruction_type":"error","instruction_message":"The card was declined."},"missing":{"instruction_type":"error","instruction_message":"There is no card on a customer that is being charged."},"processing_error":{"instruction_type":"error","instruction_message":"An error occurred while processing the card."},"invalid_request_error":{"instruction_type":"error","instruction_message":"Unable to process this payment, please try again or use alternative method."},"invalid_sofort_country":{"instruction_type":"error","instruction_message":"The billing country is not accepted by SOFORT. Please try another country."}}}},"fetched_oembed_html":false}
{"date_format":"F j, Y","time_format":"g:i a","wordpress_permalink_only":"https:\/\/factkeepers.com\/your-money-or-your-life-big-pharmas-stranglehold-on-america\/","all_default_visual_states":"inherit","modal_visual_state":false,"user_is_logged_in":false,"stripe_api_key":"pk_live_40P3DgGDAHEP1QtJ0nOU4nms5JYHI8GbQ05dYiB1S8OPP5oMSIpOCCeeIawOyeW6bWDkDMWdUeggbhxOQTSA6aedu00ROAbhXBd","stripe_account_country_code":"US","setup_link":"https:\/\/factkeepers.com\/wp-admin\/admin.php?page=tip-jar-wp&mpwpadmin1=welcome&mpwpadmin_lightbox=do_wizard_health_check","close_button_url":"https:\/\/factkeepers.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/closebtn.png"}
