Are drug companies colluding to raise prices?
Previously, we’ve discussed a lawsuit against the country’s generic drug makers by 44 state Attorney’s General. The AGs claim that the pharmaceutical companies in question are colluding to keep the prices of generic drugs at the same inflated rate. Normally, when a patent expires on a brand name drug, it allows other drug manufacturers to make the exact same drug for cheaper. However, the lawsuit states that at least 20 companies are conspiring to keep generic drug prices from being competitive.
[youtube https://www.youtube.com/watch?v=hs7MG7N8mMA%5D
Yesterday, the full details of the federal lawsuit were made public and included a number of codewords that the pharmaceutical companies used in discussions between each other. For example, ‘fluff pricing’ would refer to one of the companies charging a much more exorbitant price for a particular drug to maintain an illusion of competition. Whereas ‘playing nice in the sandbox’ allegedly referred to the companies not making trouble for each other. The lawsuit even alleges that the companies have tried to cover their tracks by instituting a no email policy and that they only communicate by phone.
Artificially inflated drug prices can also affect the facilities that carry them and the insurance carriers that try to help pay for them. However, in the end, it’s inevitably the patient who has to shoulder the brunt of the cost. If the allegations in the lawsuit are true then the people in true need of these medications become nothing more than hostages paying an ever-increasing ransom to crooked companies.
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