Campaign contributions and the cost of pharmaceuticals

Source: The Heartland Institute

Prescription drugs are much more expensive in the US than they are in other countries. Americans pay 36 percent more than Canadians, on average. We pay 39 percent more than Europeans and 43 percent more than the Japanese. Mevacor, a commonly prescribed statin for lowering cholesterol, costs $200 for 100 pills in the US. In Mexico, the cost is $8-$10. By charging US customers the highest price the market will bear, the US subsidizes the low cost of drugs in other countries.
At least once a year, some brave Senator proposes an amendment that would allow Americans to buy prescription drugs from other countries. Spokesmen for pharmaceutical companies, such as Glaxo and Merck, readily admit that the drugs they manufacture and sell in the US are the same as those they sell outside the US. Whenever the issue of importing drugs comes up, however, they cry: “Imported drugs aren’t safe! We have to protect the public!”

Let’s save the government (and consumers) some money

Senator Byron Dorgan (D-ND) proposed an amendment to the health care reform bill that would allow pharmacies and wholesalers to import drugs. He’s introduced this amendment repeatedly over the past decade. It would have allowed imports from Canada, Europe, Australia, New Zealand, and Japan. These are all countries with safety standards comparable to those in the US. Only FDA-approved drugs from FDA-approved foreign plants would be allowed.
The Congressional Budget office estimated that the amendment would save the US government $19.4 billion over the next decade through federal programs like Medicaid and Medicare. Dorgan estimates that the American public would have saved four times that much.
The vote had more yes votes than no’s — 51 to 48 – but that wasn’t enough to pass. There was a special rule in effect that required 60 votes.

Who you calling a cynical tool of the drug industry?

There was a certain amount of politics involved here. There were accusations that the White House opposed the amendment because it didn’t want to lose the support of the pharmaceutical industry on the overall health care bill.
It all boils down to money, which is the same thing these days as saying it’s politics. Theoretically this is a democracy, where elected officials represent our interests. But drug companies can afford to buy the government policies that are in their interests. They simply offer Senators campaign contributions in return for their votes.
The Senators who voted to block the import of drugs each received an average of $85,812 a year from drug companies over the past six years. This was 66 percent more than what drug companies paid those Senators who voted in favor of imports. FierceBiotech has a complete rundown of the Senators, how they voted, and how much drug money they received.
Prior to the vote, Senator Dorgan argued: “The pharmaceutical industry has a lot of clout. I know that. … I hope the American people have the ability to expect some clout on their behalf in the chamber of the United States Senate.”
Unfortunately, once again, the American people proved to be no match for the purchasing power of corporate interests.
Related posts:
Importing drugs from Canada: Will lobbyists win or lose this round?
Big Pharma lobbies against health reform: Big time
Will Obama’s health policy survive a Big Pharma challenge?
How the pharmas make us sick