The New York Times has several articles and opinion pieces about President Trump’s blueprint to manage the continually surging and unfair drug prices. Although there are several interesting ideas in the plan, major attempts to really control prices are absent. Perhaps that’s why the drug company’s stocks surged after the announcement.
The biggest thing missing is the ability of Medicare to negotiate for drug prices. In fact an upside down argument was made that drugs should be priced higher in places like Canada and Mexico, then “perhaps” drug prices here would modulate. Not long ago, I was able to purchase an old generic drug for $20 in Tijuana which is priced at $120 here in the States. Both made in the USA. Should we ask Canada and Mexico to charge more so that we can be charged less. Good luck with that!
The biggest myth is that the drug prices are capitalism at work. Actually the drug prices are often set by monopolies playing patent games not giving us a choice and unilaterally favoring big pharma. Click here to read the article by Katie Thomas and here to read the opinion piece by Paul Krugman.