Last month, California adopted a law that requires drug makers to explain and justify price hikes, making it only the third state in the country to demand some transparency in response to rising medicine prices. While this act does not control pricing, the pharmaceutical industry vigorously fought this effort over concerns that other states will take similar actions.
California’s action is a response to the failed leadership of congress and the president to control the outrageous growth of prescription drug costs. Other countries with national healthcare such as Canada, Germany, England, France, Italy and many others require financial accountability and transparency from pharma companies and then negotiate drug prices based on the value produced and the best interest of their country.
By comparison, the United States Congresses and presidents have developed a hands-off policy with Big Pharma and have legitimized excessive drug prices by prohibiting Medicare from negotiating drug prices, like the VA does. They have also prohibited Americans from reimporting prescription drugs from Canada, England and other countries at a fraction of the prices charged in the US.
It should also be noted that Big Pharma spends hundreds of millions of dollars in the US on: direct marketing of prescription drugs to consumers and healthcare providers; and campaign contributions and lobbying congress and state legislatures to oppose any change in pharma’s dominant position with federal and state governments.
Big Pharma’s Success in Killing Ohio’s Referendum to Reduce Drug Prices
On Election Day, Big Pharma scored another victory by crushing a grassroots initiative to reduce the inflated pharmaceutical drug prices paid by the State of Ohio down to the rates paid by the VA for the same drugs.
Big Pharma spent more than $75 million to kill recent Ohio ballot initiatives that threaten pharma’s massive drug revenue. They flooded Ohio television with negative, misleading and deceptive ads with the intent of creating confusion and opposition to change and were successful in defeating this consumer initiative.
In the absence of any congressional or presidential leadership on controlling drug prices, federal, state and local deficits will continue to rise due to outrageously high drug costs along with rising employer, individual and family debt.