Why?

Drug costs in America exceed the cost anywhere else in the world. Why is that? There are many reasons for that, but the most obvious one is they can get away with that because Congress refuses to do anything about it. Congress is in the back pocket of Big Pharma. Big Pharma funds their campaign chests so Congress listens to what they say and act accordingly.

This is nothing new, it’s been going on forever, Big Pharma and Congress gets richer, and we pay more for drugs than any other country. Just go down to Mexico or any other country and you can buy the same drug for about half the cost.

What concerns me and makes me mad is Big Pharma also pays little or no federal income tax. They get to write off the research and development known as R & D against earnings, thus reducing their taxable base to almost nothing. This has been going on forever.

We need a law stating they cannot write off all their R & D against earnings thus eliminating their federal income tax. They way to enforce it to force them to sell their drugs in the US for the average price they sell it anywhere else in the world. The penalty for not complying, loss of the R & D tax credit and for two years for every one they were not in compliance. That’s adding teeth to the bill and will stop the problem.

While this is a good solution, Congress will never act on it because Big Pharma has Congress in their pockets. I’m not saying it’s a bad thing but realistically, it will never happen. which leads me to the conclusion that what needs to happen is a Constitutional amendment stating that Big Pharma cannot sell the drugs in America for more than the average prices they sell it anywhere lese in the world. That would level the playing field and significantly reduce pricing for all Americans. Of course, that will never happen but is merely one way to lower the cost of drugs in America.

The Biden drug cost reduction bill as part of the Inflation Reduction Act is not even scratching the surface because there are only 26 drugs on that list. What that really means is Congress is slowing down the reduction of drugs to help Big Pharma. Of course, each year drugs get added to the list. Why not do it all at once. The reason we are not, Big Pharma will lose money, yet no one cares about the American citizen who is overpaying for their medications. This year I paid $800 for a 90-day supply (which included the Part D deductible of $590). The next time I need the medication the cost should be around $300. In 2026 the cost is $26.00 as my drug is on the list. What about those people whose drugs are not on the list? They will not

benefit from this legislation. It’s about time Congress acted behalf of the citizens and not Big Pharma. Unfortunately, no one is talking about this or any other issue that saves Americans money.

As mentioned earlier, a Constitutional Amendment to fix term limits could have an add on about the costs of drugs. That will fix the issue once and for all. I hope some Congress person looks at this blog and does something about it. Suspect it will never happen but perhaps contacting Bobby Kennedy might help get it started.

In the process of writing him a letter which I can only hope will be read and acted upon.

If anyone has a Congressional contact, reach out to them and tell them about drug prices and ask them to do something about it.

I hope this information is useful and if anyone has questions, please contact me via phone or email and I will respond quickly.

Also, take a look at Medicare 2025 Information.

The Barend Agency Inc.

Len Barend, Broker

Cell:702-250-2200
Email: len@insurance4unevada.com