[Ip-health] More on Price Controls

[George M. Carter]

***
I noted
http://www.cato.org/pubs/regulation/regv25n4/v25n4-7.pdf or a text only
version at:
http://mpelembe.mappibiz.com/archives_02/Drug_research_price.html

Well, this is NOT a great article in the sense that it supports the notion
of price controls! To the contrary. It is PRO PHARMA.

This article predicts that R&D investments would DECLINE if price controls
were instituted. It needs to be reviewed, however, to understand how they
argue the deleterious impact on R&D. The author underscores a great number
of reasons to suggest that his model may be inaccurate or inadequate. The
article also helps delineate how other countries undertake price controls
and the methods used by those countries, which is helpful background. I
think what it may also do is give the *extreme* end of how R&D may be hurt,
and frankly, I don't think it is as bad as Pharma would like people to
believe and as all the endless caveats of the article suggest.  This has
been pharma's successful threat in holding our lives hostage by claiming no
discoveries will happen without their ability to freely rape American
consumers.

However, it may suggest that public sector R&D will have to be further
bolstered. I'd MUCH rather see my tax dollars going to that--and they
already do. Indeed, absent from many analyses of R&D costs is the
contribution of our public sector tax dollars, esp. in re in vitro, animal
and even human clinical studies. Another angle on this issue refutes the
notion that R&D will collapse if price controls are instituted:
http://www.commondreams.org/views/092300-101.htm

Of course, Maine has already gone down the path of price controls:
http://www.essentialdrugs.org/edrug/archive/200004/msg00044.php See also
NEJM's outgoing editor's last blast at the industry:
http://www.aegis.com/news/re/2000/RE000604.html

Another review of the British systems that analyzes its flaws and
advantages can be useful as one model from which we can learn, avoid
pitfalls and articulate an approach:
http://www.ifs.org.uk/innovation/pprs.pdf

The US Government IS already involved:
http://www.pbrx.com/Medicare%20Bill/HR1_version3/link239.htm - but it would
appear that this is being done by Mitch Daniels, Bush's director of the
office of management and budget.
http://www.primetimecrime.com/Recent/legal_war_on_drugs.htm
See also http://www.delpshopepage.org/Frist%20Aid.pdf

The majority of websites based on a google search underscore the desperate
efforts of industry to block price controls in the U.S. One comprehensive
right-wing set of arguments at
http://www.independent.org/tii/Research/GuideHealthCareIssues.html
underscores the litany of arguments that those of us who support price
controls will face. Another one,
http://www.washingtonpolicy.org/HealthCare/PNMatthewsDrugPrices.html, talks
about the threats to "bold innovation" -- for which I really kinda had to
laugh (to avoid screaming)...the huge quantities of "me-too" drugs define
"bold"?

The constant refrain is that R&D will be hurt--but clearly, it has already
been hurt severely as pipelines narrow, especially as licensing fees climb
to pay for every step of the way, up- to downstream, as everything is
patented. Other articles and discussion on price controls for the energy
and telecommunications industries abound.

Anyway--lots of food for thought in these various URLs and I know there are
many others. I think within them is the potential to articulate a basic and
strong plan for price controls. Will the candidates adopt it? One of my not
so favorites appears to have already!
http://www.thoushalthonor.org/news/edwards.html

I think we should consider what form of price controls would make the most
sense, especially given that the US has so many resources and nearly 300
million people.
George M. Carter