Tag Archives: markets

Pharma and Drug Prices

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The Trump administration has proposed a rule that would require companies advertising drugs to provide the list prices of those drugs in their advertising—including their television advertising.  Big Pharma is opposed, and wants instead to be left to voluntarily provide pricing information by having links in their advertising that would guide folks to a separate Web site.

I sympathize with Big Pharma on this. Government regulation already is out of hand; the Trump administration is reducing that, and this is an unnecessary addition.

There is an alternative.

The FDA could compile a list of drug list prices; region-by-region retail prices at places like Walgreens, CVS, Walmart, amazon (note that this is not an exhaustive list of retailers); and the tier within which each drug sits.  This list then could be made available on the FDA’s Web site home page above the fold.

This more central source, in addition to encouraging competition among drug companies, would encourage more competition among retailers.

Exxon’s Carbon Tax

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Exxon Mobil Corp is throwing $1 million at the move to produce a national carbon tax.

Exxon’s move is an attempt to manage what it sees as the risk of a similar movement in the US, in ways that it hopes will simplify requirements on its industry….
Exxon sees a carbon tax as an alternative to patchwork regulations, putting one cost on all carbon emitters nationwide, eliminating regulatory uncertainty….

On the contrary, Exxon is looking for short-term competitive political advantage at the expense of long-term economic—real—advantage.  That’s unfortunate.

It’s also unfortunate because, leaving aside the question of whether a carbon tax even would work as claimed, the scheme is based on the false premise that increasing atmospheric CO2 somehow is bad.  Atmospheric CO2 is, in fact, critical—as in can’t live without it—plant food.  In addition to that small fact, ice core samples from both ends of the earth—Greenland and Antarctica—reaching back 400,000 years indicate that rising atmospheric CO2, far from being a harbinger of bad warming to come, lags planetary warming by several hundred years.  The rise confirms that a cold planet is warming out of its Ice Age, and life is recovering and exhaling increasing amounts of CO2 into the atmosphere.

In Other Parts of the World….

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A man in Austria was shocked to be handed a bill from a debt collection agency for €10,365 ($12,000) after misplacing his hotel key….

After all,

the key was a skeleton key for the entire building, and now the owner is claiming all of the hotel’s intricate locks must be replaced.

So—a hotel is careless of its security setup, and that makes its customers responsible for any potential breach.

Hmm….

Free Trade in North America

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With a Mexico-US trade agreement in nominally in hand (our two nations’ legislatures have ratify it, and our own Progressive-Democrats in the Senate are already saying #NO, #RESIST, and too many Republicans are acquiescing, though), Mexico wants Canada to join the agreement.  Mexico’s President-elect Andrés Manuel López Obrador, after speaking with Canadian Prime Minister Justin Trudeau:

There is still time to achieve a trilateral agreement[.]

And

We hope they reach that understanding so that it will be a trilateral agreement.

Certainly, Canada’s joining an agreement would be good, but first the Canadians have to get serious in their negotiations.  President Donald Trump already has offered a tariff-free régime, and Canada won’t even discuss it.  Trudeau and his Minister of Foreign Affairs, Christia Freeland, steadfastly are demanding their protectionist tariffs—dairy, for instance—remain in place.

Update: They’re in. Now it’s necessary to convince Progressive-Democrat and self-serving Republicans in the Senate to ratify the deal.

Free Markets for Health Care

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Here’s an illustration of why one is badly needed.  The Wall Street Journal‘s article is centered on health coverage plans, but the underlying problem is in health care provision and the monopolistic nature of both provision and coverage.

Last year, Cigna Corp and the New York hospital system Northwell Health discussed developing an insurance plan that would offer low-cost coverage by excluding some other health-care providers, according to people with knowledge of the matter. It never happened.
The problem was a separate contract between Cigna and NewYork-Presbyterian, the powerful hospital operator that is a Northwell rival. Cigna couldn’t find a way to work around restrictive language that blocked it from selling any plans that didn’t include NewYork-Presbyterian, according to the people.

And

Dominant hospital systems use an array of secret contract terms to protect their turf and block efforts to curb health-care costs. As part of these deals, hospitals can demand insurers include them in every plan and discourage use of less-expensive rivals. Other terms allow hospitals to mask prices from consumers, limit audits of claims, add extra fees and block efforts to exclude health-care providers based on quality or cost.

We’re on track to commit 20% of our GDP to health care costs, and the industries of health care provision and health care coverage operating outside a free market environment is the major driver of that expense.

The WSJ piece goes on at length in this vein.

If patients and our doctors were able to shop around and force hospitals, clinics, and coverage providers to compete for our business, we’d very quickly see better health care, better (actual) health insurance, and lower costs.  If our doctors had to compete for our business, we’d see just as quickly better care at lower cost.  And our doctors would need have no fear of costs—their fees—going too low: there’s a lot to be said for patient loyalty to a good doctor, both from a quality of care and continuity of that care perspective.