Why Trump Ought To Be REMOVED
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Display list of topics
Sarah's Resources You Should See
Sarah's Blog Buy Sarah's Pictures
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2018-05-11 11:20 by Karl Denninger
in Editorial , 246 references Ignore this thread
Why Trump Ought To Be REMOVED
[Comments enabled]

Trump promised to fix medicine.

He's lying, and is going to lie again today.

Let's cut the crap folks -- you can stop a huge part of the drug cost problem with most-favored nation pricing requirements.

From my previous article on this:

Wholesale drug pricing in the United States must be on a "most-favored nation" basis.  The impact of this would be to force a level price across all nations for drugs produced by any pharmaceutical company marketing both in the US and anywhere else in the world.  Violations, including attempts to "offshore" via subsidiaries to evade this requirement are deemed criminal and civil acts.  The civil penalty shall be 300% of the difference paid to the customer who got screwed, and another 300% for each instance of a prescription filled at an inflated price paid as a fine to the government.  This would drive drug prices down by at least half in the United States and for many drugs by 90% or more.  It would instantly and permanently end, for example, the practice of charging someone $100,000 for scorpion antivenom in Arizona when the same drug from the same company is $200 for the same quantity 40 miles to the south and across the Mexican border.  Since all prices must be posted at the retail consumer level for both goods and services controlling the drug pricing problem at a wholesale level is both simpler and sufficient since competition will already exist at the retail pharmacy level.

Why won't he do it?

Because neither Trump or Congress has any desire to actually enforce anti-trust law which makes cartel-style price games illegal.

Drugs are physical goods.  Therefore they are subject to Robinson-Patman.  But Congress and the Executive have allowed drug firms to play this game with foreign sales that are a rank violation of the intent of said law, and they have passed laws preventing re-importation or simple importation by anyone without the drug company's permission.

Had that not been done you could get on a plane, fly to India, fill your suitcase full of Sovaldi and come back to the US.  Doing so would instantly collapse drug prices in the United States -- in many cases by 90% or more.

We don't have a President that gives a damn about Americans and medical costs.  We haven't had one who gave a damn since the problem began; instead every one of them, and all of Congress, profit from screwing you blind instead.

When will you quit putting up with this, America?

Go to responses (registration required to post)
 

 
Comments.......
User: Not logged on
Login Register Top Blog Top Blog Topics FAQ
User Info Why Trump Ought To Be REMOVED in forum [Market-Ticker]
Bw3
Posts: 33
Incept: 2011-12-04

Report This As A Bad Post Add To Your Ignored User List
Published today in the Washington Post:
https://www.washingtonpost.com/news/powe....

The Health 202: Here's what to expect from Trump's speech on drug prices

snipped from article: "President Trump is expected to highlight the wide and confusing gap between the listed price of medications versus whats actually paid for them and how much consumers themselves must dish out at the pharmacy counter in a major address today on prescription drug prices.

Administration officials said yesterday the president will outline in his 2 p.m. speech a comprehensive plan to tackle drug affordability, involving all parties in the drug supply chain. But lobbyists and industry insiders say he may take particular aim at the pharmacy middlemen known as pharmacy benefit managers (PBMs) who negotiate drug coverage, payments and rebates between insurers and drug makers."
Tickerguy
Posts: 152887
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
Utter bull****.

Yes, PBMs are ripping everyone off. But it's a 10% issue, not the 90% one.

----------
Winding it down.

Niceconstable
Posts: 10
Incept: 2018-01-29

Report This As A Bad Post Add To Your Ignored User List
Well now. Trump is fantastic. He is going to stop the rip-off by foreign countries. I note that no one from Europe ever gave a note of thanks for subsidizing their healthcare. Or from Canada either.

This all started under Bill Clinton and Hillary was the driving force. They started using the gift of insanely low drug prices to get compliance with foreign policy goals.
Sammieboy7
Posts: 1
Incept: 2017-07-26


Banned
Report This As A Bad Post Add To Your Ignored User List
Karl,

Just watched Trump and based on what I'm hearing, he's doing the best he can and looks to saying most of the things you have written about. I don't agree that he should be impeached. What alternatives do you have in mind? Hillary?? I mean Trump has been a big breath of fresh air and there are no other alternatives. It seems to me that Trump is fighting so many battles and he probably was not in a position to deal with this earlier last year because of other pressing issues. I'm calling this a win. Just need some support. Is anyone else (politician) out there even MENTIONING DRUG COSTS??
Tickerguy
Posts: 152887
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
@Sammieboy7 - Horse****.

Since he runs the Executive he can ORDER the DOJ to bring anti-trust charges, and fire anyone who won't.

Get your mouth off his schwantz and run your crap somewhere else -- oh, and by the way, socket puppet accounts here are against the rules, the system caught you, and they were all just banned.

----------
Winding it down.

Jal
Posts: 616
Incept: 2009-03-25

Report This As A Bad Post Add To Your Ignored User List
Trump's solution is to make all other countries pay more for drugs.
This is his way of lowering prices in the USA
It wont work for foreign drug mfg.
There are drug mfg in other countries.
I agree with Karl, Americans should buy foreign drugs
Niceconstable
Posts: 10
Incept: 2018-01-29

Report This As A Bad Post Add To Your Ignored User List
Since all states support state and local monopolistic structures it seems like going after that with anti-trust violations requires a really really big plan. Not that the DOJ will sue all states; they only need one. And maybe only just one small violation but a representative violation. Such an action would see vast resources spent in defeating it. It would have to go the the Supreme Court.

Mid San Francisco Peninsula where Stanford University Hospital is located, there is a Board that has to give you permission to open any kind of medical service. I would start with that one. It doesn't permit competition on the theory that over supply isn't the best use of medical resources. That ain't the law and I think it is a good place to start this off.

Right now, cost shifting is the way this monopolistic system works. Costs need to come down a lot after breaking-up this system because without the cost shifting medicare is going to have to pay market prices.
Bw3
Posts: 33
Incept: 2011-12-04

Report This As A Bad Post Add To Your Ignored User List
more Trump medication plan discussion on zerohedge:
https://www.zerohedge.com/news/2018-05-1....

A link to Trump's 44 page "blueprint":
https://www.hhs.gov/sites/default/files/....
Analog
Posts: 1548
Incept: 2010-12-29

arkansas ozarks
Report This As A Bad Post Add To Your Ignored User List
Pharma/Insurance complex owns the swamp.

And they own the swamp's propaganda arm too - who's the only advertisers on network evening news ?

Tough battle.

a.
Inline

----------
Never trust a computer with anything important.
Tickerguy
Posts: 152887
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
Given what they're playing with I'm shocked someone hasn't said "I'm ****ed and so are you!"

----------
Winding it down.
Themortgagedude
Posts: 10648
Incept: 2007-12-17

saint louis
Report This As A Bad Post Add To Your Ignored User List
Trump did say something about why should we pay more in America. Heard Debbie Stabenow voice similar statements. Keep up the work KD. Word is getting out. Probably need 10% of America to understand the issue for it to really gain traction. And then it can become a populist movement.

----------
I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Lobo
Posts: 469
Incept: 2013-12-25

Report This As A Bad Post Add To Your Ignored User List
Last weekend's 60 Minutes had a story about a drug company (Mallinckrodt Pharmaceuticals) that supposedly bought the company that made a competing drug, shelved it, and increased the price of their drug by a factor of 1000.

Not surprisingly, the whole 60 Minutes story concentrated on Mallinckrodt and how evil they are. According to the story, Mallinckrodt was supposedly investigated and paid a 100 million fine without admitting any violations of law. And, of course, cBS totally blew off the chance to shine a light on the cockroaches at the DOJ to ask them why Mallinckrodt wasn't under investigation for anti-trust and monopoly violations and why the Mallinckrodt CEO hadn't been perp walked through a press conference.

Quote:
On 60 Minutes, Lesley Stahl interviews Larry Morrissey, the former Mayor of Rockford, Illinois about why prescriptions cost so much. Because the fix is in, thats why, Morrissey says, thats the short answer. The cost of one drug, Acthar (officially H.P. Acthar Gel), threatened to cripple his entire city budget, Morrissey says. Acthar Gel is commonly used to treat infantile spasms that occur in infants and children under 2 years of age. Acthar Gel is injected beneath the skin or into the muscle. In Rockford, there were two babies who needed the drug. In 2011, Acthar Gel sold for about $40 a vial. Today its more than $40,000 a vial. You read that right. (Thats up 100,000 percent.) The City of Rockford was paying about $500,000 for two babies the city provides health care for more than 3,000 people including 1,000 employees and their families.

In 2017, Rockford sued the owner of Acthar Gel, Mallinckrodt Pharmaceuticals, over the price of the drug. The class action complaint claims: By establishing and maintaining a monopoly, exercising monopoly power, and engaging in other unlawful acts and practices, the Defendants [Mallinckrodt] were able to extract exorbitant revenue from consumers that had nowhere else to turn for treatment. Rockford is asking a federal judge to force Mallinckrodt Pharmaceuticals to set a fair price, and to be awarded $5 million to recover inflated payments, interest, damages and punitive damages.

[Note: In 2014, Mallinckrodt acquired Questcor Pharmaceuticals for $5.6 billion which included Acthar Gel. In 2011, Mallinckrodts net sales were $2 billion. In 2016, Mallinckrodts net sales were $3.35 billion.]



https://2paragraphs.com/2018/05/60-minut....

I imagine that the people going through the Mallinckrodt emails and files in discovery will have some very interesting reading. I hope they put Mallinckrodt out of business. I'd prefer to see a bunch of execs in orange coveralls in a pound-you-in-the-ass federal prison.

----------
Village Idiot
Login Register Top Blog Top Blog Topics FAQ