So who pays for the reduced prescription costs in the Inflation reduction act ?
Clueless is in St Croix touting prescription reductions from the act and taking full credit for the "savings " .
President Biden on Twitter: "The Inflation Reduction Act puts an annual $2,000 cap on prescription drug costs for seniors with Medicare Part D. It will save folks on one prostate cancer drug about $6,000 a year. It'll save the thousands of women taking breast cancer treatments $7,000 a year." / Twitter
President Biden on Twitter: "In six days, a month’s supply of insulin will be capped at $35 for our seniors." / Twitter
President Biden on Twitter: "Just 12 hours until many of the cost-saving provisions in the Inflation Reduction Act kick in for millions." / Twitter
Trouble is that the plan does nothing to reduce the cost of drugs. All it does is pass the costs off to someone else. In this case it will be you and me.
Quote:
Drugmakers including Pfizer Inc, GlaxoSmithKline PLC, Bristol Myers Squibb, AstraZeneca PLC and Sanofi SA plan to raise prices in the United States on more than 350 unique drugs in early January, according to data analyzed by healthcare research firm 3 Axis Advisors.
The increases are expected to come as the pharmaceutical industry prepares for the Biden Administration's Inflation Reduction Act (IRA), which allows the government's Medicare health program to negotiate prices directly for some drugs starting in 2026. The industry is also contending with inflation and supply chain constraints that have led to higher manufacturing costs.
The increases are on list prices, which do not include rebates to pharmacy benefit managers and other discounts.
Drugmakers to raise prices on at least 350 drugs in U.S. in January (emergencyemail.org)
The government assumes the power to fix prices . The drug maker is given the opportunity to "negotiate " the price. But in the end if it doesn't comply with the government price a “noncompliance” excise tax of up to 1,900% of the medicine’s daily U.S. revenue will be slapped on the drug company.
Quote:
If a drug manufacturer objects to the price dictated by HHS or thinks the government has unfairly calculated the inflation rebates, it has little legal recourse even if it can be demonstrated that the price the government wants them to accept is below manufacturer cost. The law also contains language prohibiting judicial or administrative review of whether the drug is eligible for negotiation or the price that is set. The IRA also imposes fines of up to $1 million a day if the company fails to provide HHS with any information it demands. And if a drug company is determined to have “knowingly” provided inaccurate information to the government, it can be fined up to $100 million.
The only way a manufacturer can exit a negotiation is if it chooses to withdraw all its products from being purchased by Medicare and Medicaid. Pulling out would be a financially ruinous move since those programs are far and away the largest buyers of prescription drugs in America. ....
“Apart from one or two rare wartime exceptions, due process requires that a party deprived of property must have the opportunity to be heard,” he said. “The IRA's bar on administrative  or judicial  review is an unprecedented  deprivation of due process.”
With New Pricing Law, the Feds Can Make Drug Firms Offers They Really Can't Refuse | Investigative Reports | fairfieldsuntimes.com
The company has the choice to eat the loss or to pass them on by raising costs of drugs not affected by the law.
So drug prices will increase due to this plan. That will be tacked onto increases in medical insurance costs .
[QUOTE]Economists, business leaders and health care industry experts are warning that the wage, revenue and supply chain pressures that hammered the margins of hospitals and clinics during the pandemic are about to send health coverage and out-of-pocket medical bills through the roof.
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Health care inflation is coming for Biden - POLITICO
How's that for lowering health care costs !!!! ????
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