Drugs, Money, and Power Defines Big Pharma

By Lenny Potash

The cost of healthcare continues to increase much faster than the rate of inflation and the number one reason is prescription drugs. The runaway costs of especially what are called “specialty drugs” soared 32% in 2014 according to CalPERS.

Don't mistake “specialty” for discretionary or boutique. Though not commonly used, “specialty drugs” are essential if you have Hepatitis C, AIDS, rheumatoid arthritis, cancer, MS, etc. Because they are not common but seriously needed, pharmaceuticals have set staggering prices on these drugs and healthcare advocates are yelling.

We finally will have a chance to rein in the cost of drugs to California taxpayers and for millions who have to choose between high cost prescriptions and food or rent. The California Drug Price Relief Act easily qualified for this November's ballot. If passed, this initiative will impose price controls on prescription drug purchases funded by the state. It would mandate that California pay the same or less than U.S. Department of Veterans Affairs. The VA is the only public entity that negotiates drug prices for the millions of Vets it serves.

While the Act does not control drug prices for those who who aren't directly or indirectly funded by the state, it will cover millions:

• 7 million non-HMO Medi-Cal beneficiaries;
• 2 million CalPERS and State Teacher Retirement System members;
• 112,000 residents and inmates of California institutions; and
• 31,000 residents who receive AIDS drugs from government-assistance programs.

The bottom line is that California tax-payers will be substantially cutting their contributions to Big Pharma's profits and greed.

Don't be fooled by the myth that drug prices are set so high so that pharmaceuticals can invest in research and development (R & D) of new cures for what ails us. In fact, the drug companies spend much more on sales and marketing than on R & D. Additionally, it's estimated that 80% of funding for R & D comes from public sources.

The CA Drug Price Relief Act was initiated largely by the AIDS Healthcare Foundation, but is being vastly out-spent by Big Pharma, which has already amassed millions to defeat the initiative. For more information or to support and endorse the Act, go to Stop Pharma Greed.

Published May 17th, 2016

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