Tuesday, November 14, 2006

Most Favored Pharmaceutical

If federal health officials are afraid of negotiating drug prices with Big Pharma, perhaps they should support a best price agreement. Just require that pharmeceutical companies offer government programs the best prices available to comparably large retailers. The idea that suppliers, including drug companies, must bow down to Wal-Mart's market demands but can insist on full costs for the American taxpayer is one of the reasons I dislike capitalism. The big retailers make their money in the difference between wholesale and retail. Public programs are denied the opportunity to use market power to negiotiate the same kind of lower costs.


Under my plan, federal health programs would negotiate the right to purchase at best prices. There would be no opportunity for "government run health care". Just the opporutnity to make capitalism work for public, not just private, gain.

1 Comments:

Blogger Neil Fleming said...

Sellers lower prices for any group that can deliver large number of buyers. It doesn't make any difference whether it's Wal-Mart, government, or Blue Cross.

6:31 PM  

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