Blogger Joe Glasse: Wishing 'we could just trust the drug and insurance companies to do the right thing'

Create: Fri, 08/28/2009 - 00:20
Author: Joe Glasse

I do not think that any health care insurance including Medicare should be a money-making product. I cannot accept the large profits that are made on the backs of the Government and Medicare recipients by private insurance companies.

An example is Humana’s second quarter profits of $281.8 million. How much do they pay their management? How much money are they paying for advertising including useless notices and brochures?

I suggest a public or non-profit option that is based on the proven actuary tables, and reasonable operating costs. The premiums would reflect these costs. There still could be private insurance however they would have to match or offer better coverage than the public or non-profit offer. All should be nationally. No difference between states.

The premiums that you would pay on Medicare would be determined by your income including non-taxable income and your net worth, not including your primary residence. This would be on a graduated scale with premiums starting at the present level to a top maximum level. If you reach the top level you would not receive the benefits of Medicare.

Does Warren Buffett need Medicare?

Medicare Part D - Suggested solutions:

1. Patent drugs to Generic
Review the status of the laws regarding drug companies’ rules on the length of time before the patent expires. “In the US, drug patents give twenty years of protection, but they are applied for before clinical trials begin, so the effective life of a drug patent tends to be between seven and twelve years.” Drug companies often apply for extensions and are successful in acquiring them. This should not be allowed! Having generics come to the market faster will reduce the costs of drugs dramatically. The system gives the drug companies a monopoly on drugs. 


2. Negotiate negotiate negotiate for prices with drug companies
With the purchasing power of Medicare Part D the government should negotiate with the drug companies for the prices of drugs. What smart company (or Government) with large buying power would not negotiate with their vendors? In the forming of Medicare Part D there was no negotiation with the drug companies. The Republicans insisted on this.

3. Formulary
Standard drug formulary for all insurance companies. They cannot change or modify the formulary, ever. As new drugs come along the negotiated price would be extended and the drug becomes part of the formulary.

4. No drug discrimination
You cannot be dropped because of the drug you take. The insurance companies can do this now.

5. Doughnut hole
No doughnut hole. Eliminate this needless, confusing rule that only benefits the drug companies

6. End insurance by state
Make the Medicare part D program a national program and is standard with every state. One standard national policy

7. Price increases
Drug Companies cannot raise prices unless approved by the insurance dept of the Government. Similar to the insurance commission in Florida.

I wish we could just trust the drug and insurance companies to do the right thing. They have proven over the years that they cannot be trusted. It is sad to say that government regulation is necessary. This is nothing new – consider certain companies’ respect of our water, air, pollution in general, child labor, illegal employees, financial such Bernie Madoff. The list goes on.