Tag: amazon
Who Will Benefit From The Latest Version Of Trump RX? Not Most Consumers

Who Will Benefit From The Latest Version Of Trump RX? Not Most Consumers

I’m a relatively healthy 75-year-old man who takes one prescription drug, a generic statin to keep my cholesterol count below the level recommended for preventing heart attacks and strokes. Those levels were recently lowered by the American College of Cardiology and the American Heart Association, which will likely lead many more Americans to be eligible for taking the pills.

Both those facts piqued my curiosity about the announcement made Monday by Donald Trump with Mark Cuban, who runs Cost Plus Drugs, at his side. They were touting adding 602 generic drugs, including statins and blood pressure control meds, to TrumpRx, the government website that directs consumers looking for lower cost drugs to Cuban’s company GoodRx and Amazon Pharmacy.

Who will actually benefit from TrumpRx, I wondered, which is touting mostly generic drugs? And how much will they actually save?

First, I looked up what I could save by buying my generic statin from Cost Plus. Under my Medicare supplemental plan, which comes through my retired wife’s former employer (a public school system), CVS Caremark manages the pharmacy benefit. The PBM requires I pay a $20 co-pay at the pharmacy counter to obtain a 90-day supply of 20-milligram rosuvastatin, the generic name for Crestor.

Cuban’s Cost Plus mail-order website says it would charge me $7.85 for a 90-day supply plus a $5 shipping fee, thus saving me $7.15 for each refill or $28.60 a year. However, Cost Plus also tacks on a $5 pharmacy handling fee. It was unclear from the website if that was part of the $7.85. If not, adding that $20-a-year into the total cost would wipe out most of any savings for me.

I then called CVS Caremark to inquire about their savings should I decide to jump off their plan for those meager savings. I use the phrase “their savings” cautiously. I have no idea if my wife’s former employer or its plan’s medical insurer hires the nation’s second largest PBM, or how much either pays to CVS Caremark. Moreover, how much the PBM profits from the ultimate payer — the taxpayers behind the public employee retirement system — is unknown. So is the price it pays the generic manufacturer and any other middlemen that may have stuck their hands into the honey pot.

In any case, the call center operator told me the total cost to the PBM was $60.86 every 90 days. But that was before I paid $20 every three months at the pharmacy, so the cost reduction for everyone else would be about $164 a year, at least six times more than me. As noted above, how those savings would be divvied up between the PBM, the medical insurer and the employer-payer is safely contained in someone’s black box.

Will it benefit the uninsured?

How about the alleged major beneficiaries of TrumpRx — the uninsured who have to pay for any health care out of their own pockets? Their ranks are growing daily due to this year’s massive increase in rates for Affordable Care Act plans triggered by the regime’s handmaidens in the Republican-run Congress, who allowed the Biden-era increase in plan subsidies to expire.

When ACA-insured, the people dropping plans paid nothing for their cholesterol and blood pressure control medications, even if their plan had deductibles. All preventive services rated “A” or “B” by the U.S. Preventive Services Task Force must be offered free of charge under the ACA. Statins are rated “B.”

But under TrumpRx, those dropping coverage (or those that never had a plan in the first place) will have to pay the full cost. If they turn to Cost Plus Drugs, that would be at least $52 a year with maybe an additional $20 for the pharmacy fee.

Of course, both groups could run into trouble when renewing their prescriptions if they no longer have or never had a primary care physician. When signing up for Cost Plus Drugs, which I did today, I had to provide the name and contact information for my prescribing physician.

Even if they can get past that hurdle, people who are uninsured are usually pinching pennies. They no longer have a primary care physician. They don’t go in for routine checkups, which might identify when they have high blood pressure or dangerously elevated cholesterol. They are less likely to adhere to diets with less salt and less processed foods, which promote better heart health.

The ACA had it right. Drugs that have been proven to prevent serious diseases should be entirely free of charge to the consumer/patient. They are a wise investment that pays off in reduced hospitalizations and reduced complications from chronic diseases, which in turn reduces long-term health care costs. Plans like my supplemental should eliminate their co-pays entirely for such drugs, especially when they are generics like most statins and blood pressure meds.

TrumpRx sets up a financial barrier to access. It will decrease the population taking these important interventions. It is a public relations stunt designed to look like the regime is doing something about the high cost of drugs, which is entirely driven by the cost of new drugs coming to market and the high prices on those that remain on patent, not the extra fees PBMs tack onto prices.

Paying for value

One final thought: The regime is stepping up its pressure on European countries to raise their drug prices, which are substantially less than what is paid in the U.S. Why? Other advanced industrial countries are effective drug price negotiators. They refuse to pay more than the carefully calculated medical value of a prescription.

The U.S., on the other hand, insists that foreigners pay their “fair share” for innovation instead of using the same negotiating and value measurement tactics. Big Pharma’s argument — that the high cost of drugs is driven by the high cost of research and development — never held much water and has grown increasingly shallow given how much innovation has moved to China in the wake of the regime’s immigration policies and gutting of National Institutes of Health funding.

This Trump regime’s attempt to impose so-called reference pricing is, in essence, a strategy to maintain as much revenue as possible flowing to Big Pharma. It provides no long-term brake on rising costs. The U.S. would pay slightly less; other industrialized countries would pay slightly more; less developed countries would continue to go without the latest therapeutics; and the drug industry would maintain the status quo on profitability.

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from Gooz News


The Media's Rich Owners Want Generations To Fight Each Other -- Not Classes

The Media's Rich Owners Want Generations To Fight Each Other -- Not Classes

The idea of generational warfare is pernicious tripe. It gets pushed endlessly in the media because rich people would rather see kids lashing out at their parents than at them. And since the rich own the media, we hear a lot about generational inequality. Jeff Bezos’ Washington Post gave us the latest effort at generational warmongering.

Just to give some basic facts that are not in dispute, the country is getting richer year by year. Using the projections from the Social Security Trustees, per capital income is projected to be 15.4 percent higher in 2035, 32.6 percent higher in 2045, and 54.3 percent higher in 2055, when virtually all the baby boomers will be dead.

Since the baby boomers are for the most part not going to be partaking in these higher levels of consumption, who do the generational warriors think will be getting this income? It’s worth mentioning that these could prove to be very conservative projections of income growth. If AI has anywhere near the impact its proponents are claiming, per capita income will grow by far more than the Social Security trustees are projecting.

Given the indisputable fact that the country is getting richer, how can there be a story where Gen Xers, Millennials, and Gen Zers will be poorer on average than baby boomers? There is a story where generations can do worse through time, but that would be a story of within-generation inequality, not between-generations inequality.

The problem is not greedy boomers, but rather ridiculously rich people like Elon Musk, Jeff Bezos, and Mark Zuckerberg hoarding the country’s wealth for their own use and the use of their heirs. People are less likely to see that story because these super-rich people are the ones who own the major media outlets and social media platforms, but that is reality.

Given these simple and undeniable facts, it is striking how often we see this generational inequality nonsense. As is the case with this Post piece, they often push outright lies to make their case. For example, this piece tells readers:

“’Baby boomers “entered the labor force during decades of strong economic growth, rising productivity and relatively high real wages,’ Mitchell said. They were in their prime earning and saving years during long bull markets, namely in the 1980s and ’90s, she said, as well as the economic recovery that followed the Great Recession.” ….

“And ‘particularly for middle-income workers, real wage gains since the 2000s have been modest, compared to the robust wage growth that boomers benefited from mid-career,’ Mitchell said.” [Prof. Olivia Mitchell, who teaches business economics and public policy at the University of Pennsylvania’s Wharton School.]

“Post-World War II, ‘you had this tremendous boom that many got to ride for a very long period of time,’ Ney said.” [Jeremy Ney, a professor at Columbia University’s business school.]

This turns reality on its head. As I wrote in a piece last month:

“There was in fact a golden age, but it predated the entry of most boomers into the labor market. The economy experienced a period of low unemployment and rapid real wage growth, which was widely shared, from 1947 to 1973. At the endpoint of this boom period, the oldest boomers were 27, and the youngest were 9.

“After 1973, the economy took a sharp turn for the worst. The most immediate cause was the Arab oil embargo, which sent oil prices soaring. The economy at that time was far more dependent on oil than is the case today. Soaring oil prices sent inflation higher, which prompted the Fed to bring on severe recessions, first in 74-75 and then again in 1980-82.

“The full story is more complicated and highly contested, but what happened to the economy is not. We had a period of far higher unemployment and stagnant real wage growth that lasted until the mid-1990s. The median real wage in 1996 was actually 4.4 percent lower than it had been in 1973.

“The average unemployment rate for people between the ages of 20-24 over the years 1973 to 1988 (when the last boomer hit 24) was 11.3 percent. By comparison, it averaged 7.2 percent over the last decade, although it has been rising rapidly in 2025.”

After stagnating for two decades, the median real wage has been rising modestly for the last three decades.

Finally, the piece includes this inadvertently damning comment for the argument it is trying to push on readers.

“’In 1940 there was a 90 percent chance that you were going to earn more than your parents. To somebody born today, it is just a coin flip,’ Ney said.”

Since average income has risen consistently over the last seventy years and is universally projected to continue to rise (barring a climate disaster), the only reason why most workers won’t earn more than their parents would be a further rise in inequality. In other words, more money going to people like Washington Post owner Jeff Bezos and less money going to ordinary workers.

If there is not a further increase in inequality, then most workers in ten or twenty years will be earning considerably more than do workers today. That is irrefutable logic, which apparently has no place in the Washington Post.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.



Jeff Bezos

The Free Market Op-Ed That Bezos' Washington Post Rejected

The Jeff Bezos-owned Washington Post recently changed its policies on its op-ed page. It replaced most of its former editorial staff and announced a commitment to promoting the free market and free expression.

Many of us have laughed at these ostensible commitments. The Trump administration is probably the most anti-free market presidency this country has ever seen. A president constantly demanding shows of loyalty from private companies is antithetical to free market capitalism. The commitment to free expression also seems dubious in a country where talking honestly about this country’s past or present can be the basis for firing or even criminal charges.

Anyhow, I have often pointed out that many people who ostensibly believe in the free market are just fine with government-granted patent and copyright monopolies, government interventions that transfer trillions of dollars from the rest of us to those in a position to benefit from these monopolies. I joked that the Washington Post op-ed page probably would not be interested in a piece that argued for a free market, as opposed to these government monopolies.

A friend suggested that I write a piece along these lines and see if the Post would take it. I did and they didn’t:

Time for a Free Market in Prescription Drugs

Advocates of “free markets” usually focus on tariffs and government regulations, but they almost never look at the most costly regulations, patents and copyrights. Incredibly, most discussions turn reality on its head and treat these government-granted monopolies as being part of the free market. Powerful interests benefit from these monopolies, but political power does not change reality; patents and copyrights are massive government interventions into the free market.

These monopolies cause problems everywhere, but nowhere is the harm greater than with prescription drugs. The problem of high-priced prescription drugs is entirely an issue of patent monopolies. Drugs are almost always cheap to manufacture and distribute, the reason why some drugs sell for hundreds or even thousands of dollars per prescription, is that the government has granted a patent monopoly.

The patentholder can go to court to stop any competitors from producing the same drug. If their competitor persists, they will face huge penalties, possibly including jail time.

There is an enormous amount of money at stake with prescription drugs. We will spend over $700 billion this year on prescription drugs and other pharmaceutical products. If these drugs were all sold in a free market, without patent monopolies or related protections, they would likely cost less than one-fifth as much.

The difference of $560 billion comes to $4,400 per household annually. It’s more than the cost of the “Big Beautiful Bill.” It’s even more money than President Trump hopes to raise from his tariffs. It is real money by any standard.

But the money at stake is only part of the story. The huge profits drug companies can make from selling drugs at prices in the hundreds or thousands of dollars per prescription, that cost them $10 or $20 to produce, gives them enormous incentive to mislead doctors and the public about their safety and effectiveness.

The most extreme case of dishonest drug pushing was the opioid crisis. The major manufacturers paid out huge settlements over allegations that they deliberately provided misleading information about the addictiveness of the new generation of opioids.

While opioids are an extreme case, the problem of drug companies providing misleading information about their products is well known. Medical journals have long had to contend with ghost-authored articles, where doctors lend their names to pieces written by a person paid by a pharmaceutical company. Similarly, doctors have often taken payments to give talks at medical conferences praising a company’s drugs. With so much money at stake, there is no easy way around this problem.

Also, drug companies routinely game the system to find ways to extend their monopolies and keep out generic competition. And they spend hundreds of millions on campaign contributions and lobbying Congress to make their patents longer and stronger.

Patent monopolies do serve an obvious purpose. They give drug companies an incentive to conduct research and develop new drugs.

This would be a powerful argument for patents if they were the only way to provide this incentive. However, there are alternatives, most obviously just paying for the research upfront.

We already did this to a large extent. Before the cuts put in place by the Trump administration we were spending over $50 billion a year on biomedical research through the National Institutes of Health and other government agencies. Almost everyone familiar with the research considered this to be money very well spent.

While most of this funding went to support basic research, there is no reason that we could not triple or quadruple the funding to include downstream research. It could pay for the development and testing of new drugs, with all new drugs available to be produced as generics in a free market from the day they are approved by the Food and Drug Administration.

This would end the problem of high-priced drugs and also eliminate most of the incentive to mislead the public about the safety and effectiveness of drugs. This risk could be further reduced by requiring that all research be fully open source, with all new findings and test results available on the Internet as quickly as practical.

This sort of system of publicly supported research can be sliced and diced in a thousand different ways. Rather than having a single government agency dishing out the funds, there could be private companies, like our current drug companies, that would compete for long-term contracts (e.g. 10-20 years) to undertake research in different areas.

Dean Baker is an economist, author, and co-founder of the Center for Economic Policy and Research. His writing has appeared in many major publications, including The Atlantic, The Washington Post, and The Financial Times.

Reprinted with permission from Substack.

Todd Lyons

ICE Chief Wants Mass Deportation To Work 'Like Amazon With Human Beings'

Acting Immigrations and Customs Enforcement Director Todd Lyons told attendees of the Border Security Expo conference in Phoenix, Arizona, on Tuesday that he wants to round up human beings like Amazon deliveries.

He said that the government needs to “get better at treating this like a business” and that he wants the deportation process to work “like [Amazon] Prime, but with human beings.”

Lyons’ dehumanizing language echoes both the rhetoric of past genocidal regimes—including Nazi Germany—and President Donald Trump himself, who has referred to immigrants as “animals,” “not human,” who were “poisoning the blood” of the country.

Other Trump administration officials who attended the conference reinforced Lyons’ harsh anti-immigrant rhetoric.

Homeland Security Secretary Kristi Noem gave the keynote speech during the conference, discussing her path from South Dakota governor to her current role within the Trump administration.

Noem, who described immigration at the southern border as “a war and an invasion,” echoed racist mass shooters and members of the white supremacist movement who have frequently characterized immigration as part of an “invasion.”

Similarly, Trump’s “border czar” Tom Homan told the audience that the policy of “family detention,” where children are detained as part of the deportation process, is “on the table.”

In fact, ICE recently detained a mother and three children from Homan’s hometown of Sacketts Harbor, New York, at a facility in Texas.

Homan was recently in the news after complaining about Democratic Rep. Alexandria Ocasio-Cortez of New York for educating immigrants of their legal rights under the Constitution. In response, she mocked Homan and suggested that he use the Constitution to “learn to read.”

Trump has made opposition to immigration a central part of his identity since becoming a politician in 2015. The remarks from his top administration officials show that the issue remains central to their ideology—and that dehumanization is at its core.

Reprinted with permission from Daily Kos.

Shop our Store

Headlines

Editor's Blog

Corona Virus

Trending

World