See, what you don’t get is, 1st world countries in Europe have great socialist healthcare systems and there’s no critical shortage of doctors. You act as though our system is the best and when really it is the worst among developed nations. And I’ll tell you why it is worst and the most expensive: it’s a ridiculous for-profit system. People pay for prescription drugs at sky rocket rates. The same drugs in other countries cost a fraction of the same price. That shit is deliberate. Lobbyists made it illegal for Medicare to negotiate lower drug prices.
I don’t understand what point you’re making here. Regardless of the limitations at the time, rich people paid more in effective taxes and the middle class thrived.
I was not alive in the 50's, I was born in 1960, and let me tell you, nobody was thriving back then.
There is no critical shortage of doctors in socialized healthcare? Why don't you visit one country north where people wait forever to have serious medical issues addressed?
Being a truck driver in Cleveland, I often rub elbows with Canadian drivers. While waiting to get loaded or unloaded, we often talk.
I try to bring up the healthcare situation here and there. The younger drivers tell me they love their system. The older drivers tell me to keep what we have, or we will be sorry if in any way duplicate their system.
Show me one country where you think the healthcare system is perfect, and I'll provide several articles saying it's not so, because every country in the world has healthcare issues including the US. Ours may be different in the way of problems, but don't kid yourself thinking they don't have problems as well.
So you want government to control prescription prices? Great idea.
Hillary's Vaccine Shortage
Price controls are proven to be a really bad idea. We have a long history of price control policies going back to the 1930s. Every one of them ended in disaster. The fact that people still propose price controls demonstrates a horrible failure of our education system and a general ignorance of basic economics.
Only competition and efforts to increase the supply can control prices. Government regulation is a big log jam on supply.
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What people don't understand is we are the innovator of many drugs in 70'sthe world. But it's a tedious task as well.
It takes anywhere form 5 to 10 years for a new drug to hit the American market thanks to the FDA and trial lawyers. When a company creates a new drug, it has to undergo all kinds of government testing. It's also hundreds of thousands pieces of paperwork that goes along with it.
But after (let's say) you spent the hundreds of millions of dollars for all this government testing. You invested 7 years of combatting red tape, and now the FDA simply says "No thanks, we will not approve it!" What do you do?
What you do is increase the price of the drugs you already have on the market. That's the problem.
But oh! other countries pay less for drugs than we do!!!! This is true, but other countries also never had to do the testing that our companies have to. So if the drug makes it to our market, they can charge much cheaper prices in other countries where the cost to market the drug is almost nothing because we paid for all the mandated research.
Then there is the liability issue no other country has. Somebody here dies because of a drug. The family can sue them right out of business. So the manufacture of the drugs needs to include a liability cost because somebody somewhere in the US is going to sue them, and we have to pay for that as well.
US citizens pay so the rest of the world can have cheap drugs? That's your preferred method?
The drugs are cheap in other countries because they have universal healthcare and their government REFUSES to pay the outrageous prices.
We don't have those same government protections because our system is based on profit. Billions and billions of our healthcare dollars do not go to healthcare. They go to insurance company and private healthcare profits. We even have to give up our access to the United States court system in order to receive treatment in many cases through forced arbitration agreements.
We fall further and further behind the rest of the first world.
US citizens pay so the rest of the world can have cheap drugs? That's your preferred method?
I don't think you are quite understanding what he is saying.
The Cost Of Developing Drugs Is Insane. That Paper That Says Otherwise Is Insanely Bad
For years, the pharmaceutical industry has relied on estimates from the Tufts Center for the Study of Drug Development,
the most recent of which that puts the cost of bringing a medicine from invention to pharmacy shelves at $2.7 billion.
Here is the point that you are missing.
What Ray is pointing out, is not that this is the "preferred method", but that this is the reality of the drug market.
Someone has to pay the bill.
A drug company easily spends BILLIONS of dollars developing a drug.
How are you going to earn back that $2.7 Billion you spent making that drug, selling it for $100 a bottle? Well you wouldn't.
So what would happen? The entire industry would go bankrupt can close.
If you spend $2.7 Billion, you have to earn back $2.7, plus a profit. If you don't make a profit, you close and go bankrupt too.
So someone has to pay the bill.
If no one pays the bill, the company goes broke and closes. Then you don't have to worry about paying a high price for medication, because there will not be any medication for you to buy.
So back to the point being made here.....
The reason why these companies can afford to charge France a lower price, is because the US is paying the bill.
Let me put it another way...
Say you are running a flower shop. It costs you $500,000 dollars to open the shop, but the cost of an individual bouquet of flowers is just $5. So you could sell them for just $10, and make a profit, but you would never earn back that half-million dollars you spent. You would be better off selling the shop, and getting your half-million back.
So you sell the flowers for $30 each. Now you are making a healthy enough profit, you can earn back that half million, and make a profit on that half million investment.
Then one day, a particular customer comes to you, and says "We're not paying $30 for each one. We'll pay you $10."
You think about it, you have a ton of customers paying the $30 each. Only this one wants to pay $10. Since you have enough paying the full price, you are going to make your money back. So the only question is, do you sell to this one customer and get a low-profit, or don't sell and make no profit?
So you agree, that this one customer can pay only $10 each, only because you have enough customers paying the full price, to make back the half million you invested.
That situation is what is happening in the drug industry right now.
The companies are spending billions of dollars to make these drugs. They can only afford to do that because they can earn back that money in the US market.
They are charging a lower price to some countries throughout Europe, because they can afford to do so, because they are making back the money on the investment here in the US.
This is why when the Massachusetts tried to cap medication prices under Romney Care, the companies openly said they would simply stop selling in the MA market.
They simply can't do that. If they lower the price on drugs in the US market, then they'll go bankrupt. You can't spend $2.7 Billion to make a drug, and then sell it for $30.
Again... Someone has to pay the bill. There is no free lunch.
And by the way, this is one of the problems I have with people who talk about how great the health care is in Europe. Many new drugs, are simply not available there. Newer drugs that have been on the US market for several years, are still not available in Europe... specifically because the governments of Europe refuse to pay the price for those drugs.
Then you say that Europeans are happier with their health care. Yeah, when you don't even know that a medication that can help you exists, it's easy to think you are getting good care. I was reading a blog by a guy who married a German woman, and moved to Germany. He was talking about how he would go to the doctor, and ask about a medication that was common in the US, and the Doctor would tell him no such medication exists.
Yeah, they are paying less, much less for drugs. Like in some cases, zero, because they can't even get the drugs.