If you’re like me, you knew that the new Medicare drug program would somehow weaken the nation by ripping off poor old people while lining the pockets of pharmaceutical companies, even if you didn’t know exactly how this was going to be accomplished. Now, as the program takes hold, the disgusting machinery is coming to light:

The boost in profits comes from a shift in the drug coverage of 6.4 million poor and elderly people from Medicaid to the new Medicare drug benefit. Unlike Medicaid, which requires drug companies to charge their lowest or “best price” for medications, the Medicare program relies on competition among private drug plans to keep prices low. By eliminating the need to discount drugs for the government, the industry can now pocket the savings.

“The net effect over 10 years is probably closer to $40 billion in extra profit,” said Stephen Schondelmeyer, a pharmaceutical economics professor … profits would likely increase in coming years as more businesses cut retirees’ drug benefits and steer their former employees into the Medicare drug plans.

I hope Grandma’s got experience taking it up the back door, ‘cause she’s gonna need it.

Posted by Wayne Uff at February 03, 2006 12:14 AM

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