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08.15 RIDE FOR THE OVERRIDE

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Ref. : Letters to the editor

Health Care & Environment

08.30 Punishing the Poor: Welfare Reform and Its Democratic Apologists

08.30 Japan’s ‘Hail Mary’ at Fukushima Daiichi: An Underground Ice Wall

08.30 Is your shampoo safe? We simply don't know

08.30 High birth rates and poverty undermine a generation of African children – report

08.30 Nasa: Earth is warming at a pace 'unprecedented in 1,000 years'

08.29 California has urged President Obama and Congress to tax carbon pollution

08.29 The Evidence for ‘Born This Way’

08.29 Should Environmentalists Worry About Hillary Clinton’s Transition Team Chief?

08.29 Floating solar device boils water without mirrors

08.29 Brain wiring needed for reading isn’t learned—it’s in place prior to reading

08.28 The Unlimited Power of Ocean Winds

08.27 EV Revolution Set To Cripple More Than Just The Oil Industry

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Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

08.30 If You Want to Celebrate a "Landslide" Clinton Victory, Don't Call Me

08.30 What Landslide? New Polling Shows Clinton and Trump Still Neck and Neck

08.29 Trump's slump in Nascar country deepens Republican fears of defeat

Justice Matters

08.30 In 'Tacit Admission' of Cruelty, DHS Says It Too May End For-Profit Prisons

08.30 Nigerian rapists escape punishment using money, influence – and marriage

08.28 DoJ Says Jail for Not Making Bail is Unconstitutional [9:13 video & transcript]

High Crimes?

08.30 Up to 15,000 bodies may be buried in mass graves in Syria and Iraq – survey

Economics, Crony Capitalism

08.29 Can Cooperative Businesses Save Communities?

08.28 How the Trumps Got Rich

08.28 Mylan CEO sold $5m worth of stock while EpiPen price drew scrutiny [Jay And The Americans.....Only In America]

International

08.30 Don't wear dresses in India, tourists warned

08.30 Why did you become a humanitarian? Aid workers share their motivations

08.30 Girls learn app coding to navigate a way out of their Mumbai slum

08.30 North Korea executes officials with anti-aircraft gun in new purge – report [let's hope for this insane, cruel dictatorship to end]

08.30 Germany mulls plan to force mothers to reveal child’s biological father

08.30 Apple ordered to pay up to €13bn after EU rules Ireland broke state aid laws

08.30 UN pays tens of millions to Assad regime under Syria aid programme

08.29 TTIP Has 'De Facto Failed,' Says German Economic Minister

08.29 South Korea Can Afford Its Own Defense

08.28 Trump and the Transformation of Politics

08.28 America’s Syria SNAFU: Pentagon’s Militias fight Turkey & CIA’s Militias

08.28 Brexit 'will put 75% of workers at risk of pension shortfall'

08.28 Turkey targets Kurdish forces south of Syria's Jarablus

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  Big Pharma Wins Big in Health Care Reform

COMMENTARY:

Big Pharma Wins Big in Health Care Reform

by James Ridgeway
First published in his blog Unsilent Generation yesterday, 22 March 2010
To a large extent, the “debate” over health care was a show debate, an extended round of Washington smoke and mirrors. The administration early on cut its deal with Big Pharma, and pretty much stuck to it throughout the process.

The Republicans look a sour lot this morning, but the pharmaceutical industry, which helps foot the campaign bills of a sizeable chunk of members of both parties, is delighted with the legislation, and with its Democratic friends in the White House and on the Hill.

Members of Congress in both parties generally have lined up behind the insurance and pharmaceutical industries from the get go. So it should come as no surprise that the Democrats, who long ago gave up any pretence of opposing corporate power, found a way to accomodate the pharmaceutical companies on the way to its tepid reform. To a large extent, the “debate” over health care was a show debate, an extended round of Washington smoke and mirrors. The administration early on cut its deal with Big Pharma, and pretty much stuck to it throughout the process.

In fact, the Dems actually made the drugsters look good, celebrating the industry’s generous “concessions” and “discounts” while ensuring that no real threat to Big Pharma’s profits would make their way into the final bill.

The industry’s main goal from the very beginning has been to fend off any government power to negotiate or seriously regulate drug prices–and this they did.

Big Pharma’s second big win was to prevent any measure that would have opened the way for American consumers to buy less expensive drugs abroad, especially from Canada.

At the same time, the supposed give-backs by the drug industry are projected to more than pay for themselves. The much-lauded discounts on brand name drugs for seniors in the Medicare prescription drug program, for example, are good for Big Pharma because they discourage oldsters from switching to generics.

And more insured people simply mean more money coming into the coffers, for Big Pharma as well as for the insurance industry.

Confirmation of the industry analysis came early in the day from the stock market, where drug stocks initially remained level; there certainly was no rush to dump shares, which is what would be expected if the bill actually represented any threat to profits. And by 1 p, EST, CNN Money was reporting a rally in health care stocks.

“I was unable to find anything in there that would cause me to have anxiety if I were a shareholder in a pharmaceutical company,” Ira Loss, a senior health-care analyst at the research firm Washington Analysis, told Dow Jones. According to the ticker story:

Billy Tauzin, who led the industry’s negotiations on health care with lawmakers, said overall drug makers fare well. “While we’re not totally happy,” Tauzin began, “we generally feel like it tracks with our principles.”

Sanofi-Aventis SA (SNY) Chief Executive Christopher Viehbacher said in an interview that the impact of the legislation will be neutral to slightly negative “but better for the industry than if healthcare reform didn’t pass.”

Tauzin, head of the Pharmaceutical Research and Manufacturers of America or PhRMA, and Viehbacher said getting protection for brand-name biologics is among the important provisions for the industry. Drug makers pushed hard to get 12 years of exclusive market protection while the White House and some lawmakers wanted to lower the protection to seven years.

Despite fees and rebates imposed by the legislation, “analysts say drug makers will end up recouping those costs through new customers: The bill would provide insurance coverage to an additional 32 million Americans.” The Dow Jones story continues:

Chalk up another good round for Pharma and Biotech in health care reform,” began a note to clients Friday from Concept Capital, a research firm.Ken Tsuboi, co-manager of the Allianz RCM Wellness Fund, sees the impact of bill, and its $90 billion in concessions over 10 years, as relatively minor in an industry that has annual global sales of about $750 billion, with about $300 billion in the U.S., and margins close to 30%.”I think that it is actually a pretty good deal for Pharma,” Tsuboi said.

The GOP, which purports to be the party of big business, ought to be applauding at least these portions of the health care reform—and perhaps when the cameras go away, some of them will quit bitching and count their blessings. As for the obnoxious Tea Party gang, if they start threatening the real power in this country, which is vested in corporations, they may well find themselves whipped and isolated.


Born in 1936, James Ridgeway has been reporting on politics for more than 45 years. He is currently Senior Washington Correspondent for Mother Jones, and recently wrote a blog on the 2008 presidential election for the Guardian online. He previously served as Washington Correspondent for the Village Voice; wrote for Ramparts and The New Republic; and founded and edited two independent newsletters, Hard Times and The Elements.

Ridgeway is the author of 16 books, including The Five Unanswered Questions About 9/11, It’s All for Sale: The Control of Global Resources, and Blood in the Face: The Ku Klux Klan, Aryan Nations, Nazi Skinheads, and the Rise of a New White Culture. He co-directed a companion film to Blood in the Face and a second documentary film, Feed, and has co-produced web videos for GuardianFilms.

Additional information and samples of James Ridgeway’s work can be found at JamesRidgeway.net and at his newest web site, Solitary Watch.

This article is republished in the Baltimore Chronicle with permission of the author.



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This story was published on March 23, 2010.
 



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