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Category: Cost of Healthcare

FTC to Fight Drug Rebates and Fees that Reduce Competition

Posted on June 22, 2022June 22, 2022 by Devon Herrick

On June 16, 2022 the U.S. Federal Trade Commission (FTC) issued a policy statement on drug rebates and fees paid by drug makers. The rebates and fee are paid to Pharmacy Benefit Managers (PBMs) sometimes in return for excluding cheaper alternatives on a drug plan formulary. The way it works is a drug maker will jack up the price of a given drug (like insulin) but give a steep discount to the PBM in return for guarantees that the plan will not include generic versions that cost far lesson the formulary.

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Wednesday Links

Posted on June 22, 2022July 25, 2022 by John C. Goodman
  • Harvard Study: Medicare could save $3.6 billion a year by taking advantage of Mark Cuban’s new mail order pharmacy.
  • Nearly 1 in 4 women in the United States will have an abortion by the age of 45; and almost 93 percent are performed before the 13th week.
  •  “The greatest heist of American taxpayer dollars in history.” They’re talking about Covid money lost to fraud.
  • In Texas, physicians who earn a “gold card” no longer have to endure the hassles of prior authorization.
  • The part of covid that’s not over: every large city is below 50% of its office space being occupied.
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Public Health Experts: America has an Eating, Drinking and Lack of Exercise Problem

Posted on June 21, 2022 by Devon Herrick

America has a collective drinking problem. And an eating problem. This is all made worse by Americans propensity to sit at home watching TV or playing video games. A recent study has found that deaths from alcoholic cirrhosis have more than tripled in 20 years. In 1999 alcoholic cirrhosis killed 6,007 Americans or about 3.3 per 100,000 adults. By 2019 the death rate had risen to 10.6 per 100,000. Keep in mind this is only for adults aged 25 to 85+

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Gas Tax Rebate

Posted on June 21, 2022 by John C. Goodman

Biden is thinking about it. Arnold Kling explains why it is a bad idea:

The basic economic analysis is straightforward. The price of gas has to be high enough to balance supply and demand. A rebate amounts to a subsidy for demand. Raising demand will force the price to go higher. Because supply is relatively inelastic, it will turn out that, relative to the price that would have prevailed without the rebate, the price will be driven up by close to the amount of the rebate. The main beneficiaries of a subsidy for gasoline demand will be producers.

And a gas tax holiday will work the same way. It will reward producers. Any consumer benefit will tend to be illusory.

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For many years, our health care blog was the only free enterprise health policy blog on the internet. Then, when the NCPA closed its doors, the health blog stopped as well.

During this five-year hiatus no one else has come forward to claim the space. So, my colleagues and I have decided to restart the blog in connection with the Goodman Institute. We invite you and others to use this forum to share your views.

John C. Goodman,

Visit www.goodmaninstitute.org

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