This battle has gone on for many years, and again, nothing is changing much here, except both are becoming more out of reach for the consumer while the political battles continue. Both industries have benefited tremendously for years with huge fat profits, and are fighting to keep the revenue and dollars coming in, even though other industries have faced tremendous losses and have had to re-think their business models and have lost plenty. The drugs are getting more expensive and insurance doesn’t want to pay for them in short if deemed too expensive, and this statement revolves around profit for both industries. In the meantime, being both entities mean life and health support, the consumer is caught in the middle.
As long as the drive to sustain and drive higher profits levels from both, the true meaning of better health care for all in the US will continue to be somewhat of an illusion. If cheaper drugs become available, Pharma loses, and Health Insurance wins.
If Health Insurance has to pay for higher priced drugs, insurance loses and Phama wins. There’s a political game of who’s going to win at the money game here and we are all patients caught in the middle of the high yielding profitable financial war. BD
April 17 (Bloomberg) -- U.S. drugmakers led by Merck & Co. and Biogen Idec Inc. are stepping up their fight against President Barack Obama’s move to encourage cheaper medical care.
Already the biggest spender on influencing policy, the drug industry is hiring well-known individuals, some with stories of personal battles against disease. They include Tony Coelho, a former House Democratic leader who has epilepsy; Andrea LaRue, counsel to Tom Daschle when he was Senate Democratic leader; and the firm of Democratic fundraiser Tony Podesta, brother of Obama adviser John Podesta.
“The companies fear that older generic drugs might very well turn out to be better than the newer advertised drugs, which bring in much more of a profit,” said Julian Zelizer, a history and public affairs professor at Princeton University in Princeton, New Jersey. “In difficult economic times, the drug companies don’t want to take any risks, so they are bringing out the biggest lobbyists in the business.”
Indianapolis-based WellPoint Inc., the second-largest health insurer by revenue, and Philadelphia-based Cigna Corp. are backing Obama with a lobbying push of their own through their Washington-based organization, America’s Health Insurance Plans.