By any accounting, Part D has been a boon to the pharmaceutical industry (free registration required). Revenues and profits at Pfizer, Lilly, and other manufacturers have jumped. This will undoubtedly lead to more research dollars available to search for cures for awful diseases, an effort exclusively funded by the US taxpayer that will benefit the entire world.
Aren’t we generous?
Generousity is not exactly the point, politics is. The Part D program represents the biggest growth in entitlement programs in 40 years, and was passed by a Republican Congress and Administration. Part D has generated a lot of cash for party coffers, one of those “win-win” things.
And, the largest donations have been made by the manufacturers making the most money from Part D.
Not only has big pharma made a ton of dough from Part D, it also eliminated the government’s ability to negotiate prices for Medicaid drugs for “dual-eligibles” (those individuals who qualify for both Medicare and Medicaid). The logic behind this escapes me, but the impact on taxpayers does not. The amount we spend on drugs for dual-eligibles has increased, thereby increasing the burden on taxpayers, present and future.
What does this mean for you?
Higher prices for drugs and eventually higher taxes.
