The Inflation Reduction Act
With a lot of fanfare about the Inflation Reduction Act reducing the cost of medications is ludicrous. This bill states that 10 medications will cost less in 2025. This is 2023. We must wait two years to see reductions in 10 medications. Where will I spend all the money I save? This is an affront to all Americans, especially seniors. As we age, we need medications to help us live better. The Biden Administration is telling us that reducing the price of 10 medications will help us all save money on medications. What perplexes me is how they only pick 10 medications and why those specific medications.
I have several thoughts on this subject and will share them with you in this blog.
- Why only 10 medications? If I don’t take any of those medications, what am I saving?
- The 10 medications chosen are expensive, but seniors need reductions in all medications, not just 10 in two years.
- There is a way to reduce the cost of all medications but neither Congress nor the President are willing to explore it and fix this mess now and forever.
- Most Americans aren’t aware that Big Pharma sells their products around the world for less than they sell it here in America. I find that to be despicable and needs to be addressed.
- Additionally, it is my understanding that Big Pharma pays no federal income tax because they write off the research and development costs against their profits thus paying no federal income taxes.
- If you couple items 4 & 5, you can see why medications cost so much.
The real issue: why is Congress not doing anything about this issue and allowing Big Pharma to sell their medications elsewhere for less than they do in the US? I can venture a guess but will leave it to your imagination to figure it out.
The simple solution is to pass legislation stating that Big Pharma cannot sell their medications anywhere else in the world for less than they do here in America. A simple and direct approach that solves the problem for everyone, not those who take those 10 medications. I cannot believe that Congress would pass such dumb legislation and not consider putting all medications under the Inflation Reduction Act. To enforce the legislation, if Big Pharma sells their medications elsewhere for less than in the US, they should be forced to pay federal income taxes with no write-offs for R&D for two years following the violation. That’s putting strength in the bill and will stop Big Pharma in its tracks and eliminate the problem. To this blogger that is how to handle the situation, so all Americans benefit from drug price reductions and holding Big Pharma responsible for their actions.
I am not against Big Pharma but reading this blog you would assume that. Not the case, just want fairness in pricing and am tired of Americans paying the price so drugs can be sold cheaper everywhere but in America.
Why do you think buying drugs in Canada or Mexico is so popular? Additionally, companies like Good RX, Singlecare, HSARX, and others are also popular places to find cheaper medications outside of their insurance.
Enough said, it’s time we held Congress accountable for their lack of action but speaking to our representatives and if they are not cooperative, help them find new careers outside of Congress.
Drug prices are way too high here in America and if we do nothing, they will continue to remain high. Tell Congress and the President that reducing only 10 drugs in 2025 is not helping average Americans to live and prosper.
I hope this information is useful and if anyone has questions, please contact me via phone or email and I will respond quickly.
Also, if you need Medicare information, take a look at Medicare 2023 Information.
The Barend Agency Inc.
Len Barend, Broker