Pelosi introduces a 95% tax plan on prescription drugs..... Wth??

So let's double the price of drugs and then put a price cap on them when the price gets ridiculous?

1. Your headline is very misleading. It doesn't start at a 95% tax plan on the drugs themselves. It is an escalating tax on the companies if they refuse to engage in price negotiations.

2. This only applies to drugs that have no competition on the market, meaning no generic or similar brand.

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The government would be directed to target drugs that account for the highest costs to Medicare and the entire U.S. health care system, taking into account both the price of medicines and the volume sold in the United States. This means that negotiations would likely focus on drugs taken by large numbers of Americans, potentially excluding those for rare diseases that typically are very costly.

To be eligible for negotiation, the drugs must also lack generic or biosimilar competition. Insulin, which has drawn congressional scrutiny over huge price hikes in recent years, must be included as one of the negotiated drugs.

The plan in part borrows from some of Trump's drug pricing agenda, particularly on tying the cost of medicines to cheaper prices often paid in other developed countries. Some of the Trump administration's ideas, however, have been met with skepticism from GOP lawmakers, who are closely aligned with drugmakers.

The HHS secretary, who would oversee negotiations, would need to consider a medicine's research and development and production costs, alternative treatments, the value of the drug and domestic and international sales information. Once the price is negotiated, a drug company cannot raise it above the rate of inflation until sufficient competition develops in the market.

The plan released today scaled back an earlier proposed initial penalty on drugmakers that refuse to participate in negotiations or don't reach an agreement with the government. Those companies would be subject to an excise tax of 65 percent of the manufacturer's annual gross sales, increasing by 10 percentage points every quarter of noncompliance to a maximum 95 percent. Previous iterations had the tax starting at 75 percent.

"This steep, escalating penalty creates a powerful financial incentive for drug manufacturers to negotiate and abide by the final price, while ensuring that patients maintain uninterrupted access to the medicines they need," the outline says.

There also would be penalties if the drug company fails to offer the negotiated price to other payers, like commercial insurers and employers.

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Mickey Goldmill

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Can’t fix stupid.

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Can’t fix stupid.

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Yeah.

"It's misleading......what they are REALLY doing is threatening to destroy companies that do agree to do what they demand".

Well. That's better.

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To be eligible for negotiation, the drugs must also lack generic or biosimilar competition.


You mean the new drugs who have just been released?

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Yep.

Basically, the Dems want to eat all of the company profits on their primary profit vehicle.........they are demanding the companies agree to let them..........OR THEY'LL frickING DESTROY THEM via a massive retroactive tax.

And, Goldmill thinks this is somehow "better" than the OP.

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Medicare already negotiates many drug prices.

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Are you REALLY going to pretend that threatening a 95% "retroactive" tax is the same as what happens when they negotiate with medicare.

Come on. Do better.

I mean hell. Why just a 95%?

Just threaten to kill all their executives if they don't negotiate on your terms!!

You fricking totalitarian piece of shite

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That's insane. What it says is, if the pharma company who created the drug, and is trying to recoup R&D cost, won't negotiate the price down to make it affordable to people who need it, the government will skyrocket the price to make it absolutely unaffordable to even more people.

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Oh no. Remember. They want the tax RETROACTIVE which means the company would have to pay it up front.

In other words. It's not really a tax because it would literally destroy any company it applied to.

What they are doing is saying, "negotiate with us and if if you don't agree to all of OUR terms in this so-called negotiation............we'll bankrupt you".

This is what a liberal thinks of as "negotiating" and apparently, our resident POS Mickey likes it

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don't see a middle ground there

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The divide between you new radical leftists and patriots is wide.

Your march closer to socialism must be slowed.