Harrop: Drugmakers raise prices because we don't haggle

[Yo_Mama_Been_Loggin]

Drugmakers rang in the new year by raising prices on hundreds of products; American prices, that is. Americans focused on the celebrations weren’t paying attention.

Allergan led the parade, hiking its prices by 10 percent on more than two dozen drugs. But note this: It didn’t raise the price of Botox, the anti-wrinkle treatment. Why? Because most users of Botox pay for it out of pocket. They can say, “I’m not bearing the extra freight. I think I’ll go another few months with crow’s-feet.”

Markets in which buyers and sellers haggle can bring reason to prices. Pharmaceuticals are special because when deemed essential to medical treatment, insurance covers them. The patient doesn’t get the full bill. Who pays? The people buying the insurance, whether private or government. That means employers pay, other buyers of private coverage pay and the taxpayers pay. There’s little in the way of a market check.

That’s why other governments have taken it upon themselves to negotiate the prices their people will pay for drugs. With a few exceptions, our government does not.

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[FiveGoodMen]

1. Because American 'christians' worship money and those who have it.

No one can server two masters...

(Who said that?)

[Igel]

2. My prescription coverage provides me with three numbers.

Retail price.
Negotiated price.
My price.

Drugs are also delisted from various "schedules' if they get to pricey and there are alternatives.

[Scruffy1]

3. Reminds me of a company I once worked for.

One way to increase sales is to just raise prices. Many companies do this routinely at the first of the year after warning letters. Because customers expect it they hardly every question it. One of our big customers, a japanese car company, actually questioned it and sent reps to our headquarters and management had to make a justification or drop it. I've often wondered what part of inflation is caused by the expectation of inflation.

[Nitram]

4. Republicans always block the ability to negotiate drug prices. Negotiating drug prices is one of the

reasons group health insurance exists.