Pay for Delay

Why is it that generic drug makers sometimes delay entering the market, sometimes long after the drug patent expires? This is another tale in corporatocracy, told by Alternet:

[I]magine you’re a big-time drug company. You want to keep competitors off the market as long as possible. Your move is to basically sue the pants off the generic drugmaker for copyright infringement, setting in motion a long and tortuous legal process. And these usually end with “pay-for-delay” deals. The brand-name drug company pays the generic manufacturer a cash settlement, and the generic manufacturer agrees to delay entry into the market for a number of years. In the case before the Supreme Court, the drug company paid $30 million a year to protect its $125 million annual profit in AndroGel, a testosterone supplement. It’s hard to see this as anything but bribery, designed to preserve a lucrative monopoly for the brand-name drug maker. In fact, this is what the Federal Trade Commission has argued for over a decade. They consider it a violation of antitrust law, arguing that the exchange of cash gives the generic manufacturer a share of future profits in the drug, specifically to prolong the monopoly. As SCOTUSBlog summarizes from the FTC’s court brief, in the regulator’s view, “Nothing in patent law … validates a system in which brand-name companies could buy off their would-be competitors.” Indeed, everyone wins with pay-for-delay but the consumer: the FTC estimates that the two dozen deals inked in 2012 alone cost drug patients $3.5 billion annually, with the brand-name and generic manufacturers splitting the ill-gotten profits.

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Time Magazine explores the destruction of American health care

Check out the feature article in this week's Time Magazine. It's called "Bitter Pill," and it's written by Steven Brill, a savvy insider. In addition to making me apprehensive that health insurance costs are about to spike upward due to Obamacare's lack of any meaningful price controls on health insurance, it gives an insider's look into the massively arbitrary pricing of health care services. In the absence of any competitive market, big hospitals (including the so-called non-profit hospitals) are freely allowed to concoct the prices they charge. They quietly maintain their made-up pricing on their non-public "chargemaster" price lists.

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10 facts about dairy milk

We are hit with so much propaganda about the "need" to drink cow milk that many Americans uncritically believe it. To follow up on an article I once wrote about all the dairy hype ("The Land of Milk and Money"), I offer this more recent article listing "10 Fascinating Facts About Cow Milk." And yes, most of the world's adults are lactose intolerant. It is not even possible for them to drank milk. We milk-drinkers are the unusual ones. Actually, I'm mostly there. I put soy milk on my cereal, but I still do enjoy ice cream. But I don't consume milk products for the calcium. I know that there are other ways to get calcium.

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Delving into Obamacare

At Occasional Planet, Madonna Gauding takes a careful look at what Obamacare means for ordinary people and big corporations.

A generous (and seriously wrongheaded) view of Obamacare is that it was a progressive bill designed to be a steppingstone to single payer. But, in reality, it was designed to strengthen, expand, and more deeply entrench corporate control of healthcare delivery. What will happen when the ACA comes online in 2014? I think millions will decide (out of necessity) to take the IRS fine rather than go into further debt buying inadequate, high deductible insurance. The insurance companies, limited to a smaller profit margin, and not getting the numbers they want, will decide they can’t make enough money to keep their yachts afloat, and fold. Hospitals, tired of treating people in emergency rooms for free, will push for Medicare expansion, as will the general population. Slowly, in fits and starts, we will move to Medicare for all. That will be a huge improvement. But, in order for us to have humane healthcare for all, the profit taking throughout the system has to stop—the $200 a pill prescription, the $15 box of hospital tissues, the many unnecessary, but lucrative procedures that line the pockets of surgeons. The “free market” for-profit health care industry with its bloated costs is the underlying cancer of healthcare delivery in the United States.

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