PILLAGE

HOW PILL MAKERS PILLAGE THE PUBLIC

Look at the facts:

  1. Drug prices cause more medical overspending in the US than anything else.
  2. Drug makers say they need to spend more on research than other companies do.
  3. Most drug makers have profitabilities of over 20% (at end of 2017).
  4. Most drug makers spend more on marketing than research.
  5. Former drug maker executives say that drug prices don't depend in research costs.

Look at the reasons:

  1. Monopolies derived from patents and copyrights are the major reason drug prices are high.
  2. Drug companies get 25 years of monopoly pricing to "recover research costs".
    This is the main cause of the pillage!
  3. FDA marketing exclusivity rules add to this trouble.
  4. Since only a finite number of patients need each lifesaving drug:
     - The demand curve is flat,
     - The companies can charge as much as they want to charge, and
     - The maximum profit point is the price where customers start skipping the drug for price reasons.
  5. Drug companies often prefer profits over better health.

Government is the reason drug prices are high. Democrats love intellectual property.

The high drug prices cause the following problems:

  1. High drug costs mean many patients aren't getting the medicine they need.
  2. High drug costs mean high insurance premiums.
  3. High drug costs mean drug theft and black markets.

How to cure the problem:

  1. Require compulsory licensing for all medical patents and copyrights.
  2. Limit royalties to a small percentage of the sale price.
  3. Remove all politicians who favor monopoly powers for drug makers.
  4. Prohibit cartels in all medical fields.
  5. Tax profits that are above twice the cost to make the same amount of drug.

EXCESS PROFIT TAX: Fill out one column for each lifesaving or chronic disease drug:

1 Set
 Price
 
Actual price for one lifesaving set of doses
or a one year set of chronic disease doses:
(ex 1)
$200.00
a1
______
b1
______
c1
______
d1
______
e1
______
f1
______
2 Set
 Cost
 
Actual cost to make one lifesaving set of doses
or a one year set of chronic disease doses:
(ex 2)
$20.00
a2
______
b2
______
c2
______
d2
______
e2
______
f2
______
3 Set
 Profit
 
Subtract line 2 from line 1 in each column.
If result is less than zero, enter zero:
(ex 3)
$180.00
a3
______
b3
______
c3
______
d3
______
e3
______
f3
______
4 Allowed
 Set
 Price
Multiply line 2 by 3.0: (ex 4)
$60.00
a4
______
b4
______
c4
______
d4
______
e4
______
f4
______
5 Excess
 Set
 Profit
Subtract line 4 from line 1.
If result is less than zero, enter zero:
(ex 5)
$140.00
a5
______
b5
______
c5
______
d5
______
e5
______
f5
______
6 Total
 Sets
 Sold
Total number of sets of doses sold or years
of doses sold (same units as line 2):
(ex 6)
4205
a6
______
b6
______
c6
______
d6
______
e6
______
f6
______
7 Total
 Excess
 Profit
Multiply line 5 by line 6: (ex 7)
$588700.00
a7
______
b7
______
c7
______
d7
______
e7
______
f7
______
8 Excess
 Profit
 Tax
Multiply line 7 by .95: (ex 8)
$559265.00
a8
______
b8
______
c8
______
d8
______
e8
______
f8
______
9 Grand
 Tax
 Total
Add lines a8 through f8
(do not add in ex 8):
 
 
9
______
  1. Collect the Excess Profit Tax on sales of each lifesaving medicine that
     - Needs one or a set number of doses to cure the disease
     - Needs a continuous supply of drug to prevent death.
  2. The tax revenue shall be used to pay for medical bills people can't afford.

Stop the needless pillage of pill buyers.