William Chirolas -- World News Trust
Jan 18, 2007 -- The Washington Post has run a few editorials and articles about the Democrats' proposed new Medicare drug bill. They have not discussed the drug company lobbyist influence on Capitol Hill. Does anyone else tire of corporate Democratic Party types retiring to lobbyist jobs that help screw up our lives?
Former Louisiana Senator John Breaux is now a lobbyist for the pharmaceutical industry, having proved his qualification for that job by being the fellow David Broder and the Washington Post editorial board praised for his willingness to cut Social Security and Medicare benefits. He may be the reason the Democrats did not design their new drug bill to have Medicare offer its own drug plan (with a list of drugs -- a Formulary -- that would require drug manufacturers to provide a major price discount if they want their drugs included.), telling the Democratic leadership that the pharmaceutical industry owned too many Congress members to get such legislation passed.
It has been reported that before taking control of the House last week, the Democratic leaders briefly considered proposing a new government-run prescription drug program as a way to reduce seniors' drug costs, but backed off out of fear the pharmaceutical industry could stall anything other than a simple change. Sounds like former Senator Breaux did a great job for the pharmaceutical industry, unnoticed by the Washington Post.
Perhaps the Post sold out to the pharmaceutical industry for the advertising revenue? Folks like Breaux do not explain why the Washington Post tells partial-truth lies about the Medicare Drug Plan, saying "fully 3,000 of the 4,300 medicines covered by Medicare are unavailable under the veterans' program," but not noting that the 1,300 drugs on the VA formulary account for the vast majority of prescriptions, perhaps 90 percent, filled by people on Medicare. The rarely prescribed not-on-the-VA formulary drugs are still available to veterans as long as they can get their doctor to explain why they need the drug in question. So the WP's "unavailable under the veterans' program" is not quite true.
In addition, the WP fails to note that none of the insurance company plans includes all drugs, as we all know because of the co-pay changes we face in our only daily life when we buy the non-preferred drug, or God forbid, the not listed drug. A limited formulary is indeed what an actuary requires before he will assume that discount prices can be obtained, since otherwise there is no quid pro quo to bargain with for the discount. But other governments get a 40 percent discount relative to U.S. prices -- a $400 billion saving over 10 years for Medicare. The Democratic leadership and the AARP are referring to the House bill as a "start," and perhaps moral suasion can get at least some discount. Meanwhile the Post warns about lost revenue if U.S. prices drop, revenue that are needed if the drug companies are to do future research. If the companies really need help funding the research, we should do so directly with Federal contracts, and not through over charging American drug clients. But the Post does not discuss this option.
Then the Post sells the idea that the VA system is defective by noting that 25 percent of VA beneficiaries are enrolled in Part D. But this is a result of the way "enrolled in Part D" is calculated, and not because there has been a mass rejection of the VA system. But the Post leaves the idea in the air.
At one time I believed the last partial truth lie told by the Post -- that VA veterans get a lower cost because most of the drugs are distributed through mail order, compared with Medicare drugs being distributed mostly through retail pharmacies. But super large chains are now doing millions of prescriptions for $4 a piece (Wal-Mart, etc.) -- so where is the cost that would be cut because of mail order?
So I ask again, has the Post sold out to the pharmaceutical industry for the advertising revenue?
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William Chirolas brings 40 years of real-world business experience in local, state, national, and international tax, pensions, and finance to the world of blogging. A graduate of MIT, he calls the Boston area home, except when visiting kids and grandkids. He can be reached at: