Medicare Part D = HUGE Profits for Drug Companies

[Icky]

[Only registered and activated users can see links] (ThxKay)

Dem "Truth Squad": Drug Company Profits Skyrocket $8 billion (27%) After New GOP Medicare Law Takes Effect



Submitted by BuzzFlash on Wed, 09/20/2006 - 1:53pm. Alerts ([Only registered and activated users can see links]) A BUZZFLASH NEWS ALERT
The Democratic "Truth Squad" of progressive House Democrats has released a report showing that pharmaceutical industry profits have skyrocketed since the Republican Medicare drug plan went into effect at the beginning of this year.
The study found that the ten largest drug companies made over $8 billion more in the first half of 2006 than in 2005 - a total increase of 27%. The biggest gainer, Pfizer, gained 73% in sales from last year by raking in more than $6.5 billion through June.

The Truth Squad blamed much of the gouging on the gag imposed by the new law prohibiting Medicare from negotiating for lower prices, a practice used successfully by the Veteran's Administration and in Canada. Other profiteering comes from 6.1 million "dual-eligible" beneficiaries who used to obtain coverage through Medicaid, which drug companies must sell to at their lowest prices, but now must get medication from Medicare, which imposes no such controls.

"The Republican Congress passed a Medicare drug bill that put the interests of the drug companies first and seniors last," said Rep. Henry A. Waxman. "The program is a multi-billion dollar giveaway to the drug companies."

"Clearly, the Medicare prescription drug plan has been very kind to the pharmaceutical industry. Unfortunately, it has not been as kind to America’s seniors," said Rep. Dennis Cardoza.


I've been screaming this for nigh on 10 months!!!

You can bet Insurance Companies will make a killing too!!!

Meanwhile, we in Pharmacy are getting KILLED! Our reimbursements are dismal!!! Operating on about 6% right now...

Heard Rite-Aid is experiencing a 37% DECREASE in profit compared to last year! Mostly due to Medicare Part D
(not that I care so much about CHAIN Pharmacies... as I am an independent... but, I'm just sayin'....)
When the Chains start taking hits like this, I would think they would dump the cash to get a "Fix"... and there is legislation in the works to indeed fix the Pharmacy part of the problem, BUT, it depends on November Elections...

[webhead]

There will be no office space given by Dems for the Drug companies to write the laws. That is a bug change in itself as Repigs gave the drug people prime seats on Captol Hill.

Still, there are the BushCo base that vote for BushCo and Repigs in Congress believeing Jesus will provide. To the best of my knowledge, Jesus is not in the Rx business. :sarcasm:

[dr.strangelove]

[Only registered and activated users can see links] (ThxKay)

I've been screaming this for nigh on 10 months!!!

You can bet Insurance Companies will make a killing too!!!

Meanwhile, we in Pharmacy are getting KILLED! Our reimbursements are dismal!!! Operating on about 6% right now...

Heard Rite-Aid is experiencing a 37% DECREASE in profit compared to last year! Mostly due to Medicare Part D
(not that I care so much about CHAIN Pharmacies... as I am an independent... but, I'm just sayin'....)
When the Chains start taking hits like this, I would think they would dump the cash to get a "Fix"... and there is legislation in the works to indeed fix the Pharmacy part of the problem, BUT, it depends on November Elections...

When you buy drugs to sell to consumers, do you buy direct from the drug manufacturers, or is there a regional seller or something. also, do you participate in some type of buying network of indies or are you really just buying by yourself. Just wondering. I know nothing about the pharm industry, but as I get older, I'd like to learn more. Also, I'm an old school "mom and pop store" supporter. I currently buy our drugs from an indy drug store, but the last indie I shopped at is now a Dwayne Reid and I fear eventually that will be all there is left. If you don;t mind teaching a little, I am interested in how this all works.

Also, once we retake the house in November (Senate too, fingers crossed!) we will no longer have laws written by the drug companies. Laws wil be there to protect the drug companies from ripping off hard working americans. Good post Icky.

[BlueBerry Pick'n]

Have you watched Le Carré ([Only registered and activated users can see links])'s The Constant Gardiner ([Only registered and activated users can see links]) yet?

you'll york up a kidney.

but the film is best watched, remembering WHO Le Carre is...


“There is no Dypraxa ([Only registered and activated users can see links]), never was, never will be. I know of no wonder-cure for TB that has recently been launched on the African market or any other - or is about to be - so with Luck I shall not be spending the rest of my life in the law courts or worse, though nowadays you can never be sure. But I can tell you this: As my journey through the pharmaceutical jungle progressed, I came to realize that, by comparison with the reality, my story was as tame as a holiday postcard" - John Le Carré, The Constant Gardener, Author's Note, 2001.

[Icky]

When you buy drugs to sell to consumers, do you buy direct from the drug manufacturers, or is there a regional seller or something. also, do you participate in some type of buying network of indies or are you really just buying by yourself. Just wondering. I know nothing about the pharm industry, but as I get older, I'd like to learn more. Also, I'm an old school "mom and pop store" supporter. I currently buy our drugs from an indy drug store, but the last indie I shopped at is now a Dwayne Reid and I fear eventually that will be all there is left. If you don;t mind teaching a little, I am interested in how this all works.

Also, once we retake the house in November (Senate too, fingers crossed!) we will no longer have laws written by the drug companies. Laws wil be there to protect the drug companies from ripping off hard working americans. Good post Icky.
I buy from a Wholesale Company... there are a few of them.
I am part of a Buying Group of some 1600 pharmacies... We have pretty good buying power... Still, I am completely independant - not part of any chain.
It is absolutely dreadful what Medicare Part D is doing to Pharmacy.
I think there are some that want there to be 3 or 4 pharmacies (See? There's competition... the public is protected! :anim_puke: ) AND/OR
MAIL ORDER Pharmacy only... it's very tragic.
But! That's what happens when you are THE MOST TRUSTED PROFESSION in the US for 15 Years in a row (OK, there was one year where we were #2) We are ABOVE Clergy!
So... we make people look bad... they gotta get rid of us! :rofl:

I digress....

Hope I answered your questions...

[Icky]

Have you watched Le Carré ([Only registered and activated users can see links])'s The Constant Gardiner ([Only registered and activated users can see links]) yet?

you'll york up a kidney.

but the film is best watched, remembering WHO Le Carre is...
Seen them... Loved the Constant Gardner (BTW, Same director as 'City of God' , if I'm not mistaken. Another EXCELLENT Movie)
The Drug Companies are an Evil lot. Very messed up business...

[dr.strangelove]

I buy from a Wholesale Company... there are a few of them.
I am part of a Buying Group of some 1600 pharmacies... We have pretty good buying power... Still, I am completely independant - not part of any chain.
It is absolutely dreadful what Medicare Part D is doing to Pharmacy.
I think there are some that want there to be 3 or 4 pharmacies (See? There's competition... the public is protected! :anim_puke: ) AND/OR
MAIL ORDER Pharmacy only... it's very tragic.
But! That's what happens when you are THE MOST TRUSTED PROFESSION in the US for 15 Years in a row (OK, there was one year where we were #2) We are ABOVE Clergy!
So... we make people look bad... they gotta get rid of us! :rofl:

I digress....

Hope I answered your questions...

Thanks, you did indeed.

[Icky]

Thanks, you did indeed.
BTW...
There WAS to be a new Reimbursment structure implemented for MEDICAID.
(Medicaid is State... Medicare is Fed)
The State gets Fed dollars to supplement the Medicare program... and damn near all states are having trouble coming up with enough money to keep Medicaid alive.

Anyway... currently the structure is something like AWP (Average Wholesale Price) MINUS 15% (or something, depending on your region in the state)(AND we purchase at something like AWP - 17-18%... so we ar e making about 3%) PLUS a "Dispensing Fee" of $3.51 AND we are to collect $1 from the patient (so, it's kinda like $4.51/Rx)... BUT! If the patient is unable to pay the $1, then we have to give them the medicine anyway (we can't refuse it)... so, you can imagine we really Don't get $4.51/Rx. (there are also various exceptions to the rule including MAC: many drug prices are MAC'd (Maximum Allowable Cost) to a Lower than AWP starting point)

To sum up: AWP - 15% + $4.51

THE New structure (as determined by the Feds!!!!) was to begin in July of this year... but has been delayed at least until January of '07. This new structure will be AMP (Average Manufacturer Price) - 17% + Variable Filling Fee.
AMP is what the Wholesaler pays for the drug. Then they mark it up before selling it to the Pharmacy... There is NO WAY I can buy drugs at AMP. And that's the new starting point for my reimbursement!!!!

The new formula: AMP - 17% + $4.50ish (depending no variables)

i.e. I would lose money on every Medicaid "Sale"

i.e. I will NOT BE ACCEPTING MEDICAID ANYMORE!!

i.e. The poor people will have to pay cash for their meds or they won't get the meds they need! AND! I may be one of the poor because I will be going out of business!!!! Good times ahead!

[BlueBerry Pick'n]

probably because drug companies are signing people up DIRECTLY with INSURANCE of their OWN...

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pharm insurance: "you're in sticky hands"



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