If you can see this Wall Street Journal article then please read it. There is an incredible scam going on. To understand it, however, you need some salient points found in a recent White House study:
- The study compared the prices of 200 top-selling branded drugs in the U.S. and 15 other developed countries. It concluded that European prices on top-selling drugs are about 32% of U.S. prices and that the difference has widened: They were 51% of U.S. equivalent prices in 2003.
- “Stringent government underpricing in foreign countries has substantially increased foreign free-riding on the United States,” said the report from the White House Council of Economic Advisers, which was released Thursday. “The result is a slower pace of overall innovation, less competition from new entrants, and thus higher prices paid for patented drugs that lack therapeutic competition.”
- Although foreign drug manufacturers also suffer from underpricing, the cost is borne disproportionately by the U.S. because it funds roughly half of all global medical research, invests 75% of global medical venture capital and accounts for 70% of patented pharmaceutical profits, the study said.
I do NOT want to get into the politics of this. In fact, it is has happened with the left and right in charge. The bottom line is that Europe brags about their national health systems but they are banking on us paying the hefty share for these drugs. It really isn’t fair. The next thing you are going to tell me is that they are going to cut their military by 70% (and let us protect them) and use that money for their health system. Wait…..