Tuesday, November 17, 2009

Big Pharma raising prices ahead of "reform"

1-Obama makes a deal with big pharma to support "reform."
2-In return for that support, big pharma says they will reduce prices.
3-Turns out this is not as much of a sacrifice as big pharma would have us believe since they have been raising prices like there is no tomorrow.

Even as drug makers promise to support Washington’s health care overhaul by shaving $8 billion a year off the nation’s drug costs after the legislation takes effect, the industry has been raising its prices at the fastest rate in years.

In the last year, the industry has raised the wholesale prices of brand-name prescription drugs by about 9 percent, according to industry analysts. That will add more than $10 billion to the nation’s drug bill, which is on track to exceed $300 billion this year. By at least one analysis, it is the highest annual rate of inflation for drug prices since 1992.

The drug trend is distinctly at odds with the direction of the Consumer Price Index, which has fallen by 1.3 percent in the last year.