President Obama "announced an offer by drug manufacturers to contribute $80 billion over the next decade to narrow the controversial gap in Medicare prescription drug coverage, a deal the president said moves the nation a step closer to comprehensive healthcare reform." Pharmaceutical companies have struck an agreement to lower Rx costs for seniors by halving the cost of brand name drugs inside of the Medicare Part D "Donut Hole.
I wonder, however, what this will do to future healthcare costs for those who are not seniors and/or are privately insured? Will the pharmaceutical companies simply shift the costs of these so-called "discounts" to the non-senior population in the form of higher Rx costs for everyone else? Some claim that the savings in drug costs will be more than offset by new drug sales. But if that is the case, then why haven't pharmaceutical companies already lowered pricing on their own, without having to make a deal with our government?
It's about time that the pharmaceutical companies do something to contribute to the cause, but I am skeptical that they are just simply going to agree to lower pricing for seniors without looking for ways to shift the cost onto some other group of consumers.
It should be noted that these discounts will not occur if congress does not pass a healthcare reform bill.
