Posted by Shyam Moondra
The drug manufacturers recently increased the drug prices in anticipation of the new health care legislation, thereby taking back some of the cost reductions they had promised only two months ago. This demonstrates why any health care reform must include a government option that would keep the service providers' greed in check. In the absence of a government option, it's very likely that the health care reforms would in fact increase the cost rather than reduce it as is hoped for by the legislation supporters.
If a government option is not included in the final health care bill, as an alternative, the bill must include a new regulatory frame-work for the entire health care industry (drug manufacturers, hospitals, insurance companies, and doctors) in which their rates and profits would be regulated by the government commissions just like public utility commissions today regulate telephone, gas, electricity, and water companies.
If the health care bill requires every American to buy health insurance, then it is imperative that prices are reasonable and that means either we have a non-profit government plan or the government regulates the prices and profits of the service providers. It would be unconstitutional to force Americans to buy health care insurance at artificially inflated prices.
In the interim, the drug manufacturers should be punished for their bad behavior. The Congress should immediately consider:
1. Changing the patent laws permitting the marketing of generics sooner.
2. Allowing reimportation of drugs from Canada and Mexico.
3. Suspending the tax subsidies given to the pharmaceutical industry.
