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Politics : Formerly About Advanced Micro Devices
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To: Alighieri who wrote (211224)11/9/2004 10:45:19 AM
From: i-node  Read Replies (1) of 1570194
 
>> do you think the fed should no bid buy everything else it buys on behalf of citizens?

I think this is where your confusion is. The bill doesn't provide for the FED to BUY anything. It provides particular reimbursement rates for particular drugs. The beneficiary continues to be the BUYER of the drugs.

Should the FED negotiate down the price of, for example, PRINIVIL, to generate a savings of $3 Million/year, that $3 Million would simply have to be paid by others who use the drug. It doesn't just "go away". I don't expect you to understand this or acknowledge any part of it. But this is the way it works.

The same is true with reimportatation. If you reimport from Canada a drug which is sold at a higher price in the United States, the savings are simply cost-shifted to those in the United States who are not on Medicare, driving up the cost of other insurance.

You seem to lack any fundamental understanding of economics whatsoever. To have great drugs, the capital markets require a certain return on investment. If they aren't getting that return, the drugs don't happen. The research stops.

Selling drugs for less money in other nations is simply the global marketplace at work. While it seems unfair to us, the amount which can be charged for a drug in Africa may not be the same as the amount which can be charged for it in America. That does not mean the drug shouldn't be manufacturered for sale in Africa. As long as the drug can be shipped to Africa and sold for more than its variable manufacturing costs, selling that drug in Africa helps reduce prices in the United States.

I appreciate your simplicity, but unfortunately, it just don't comprehend the global marketplace.
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