This bit feels like it should have been given more detail:<p>> In his written testimony, Jørgensen said Novo Nordisk’s insulin product Levemir was previously available to 90% of U.S. patients through formularies. But insurers began to drop coverage of the insulin after Novo Nordisk cut its list price, leading to only 36% of patients having access.<p>> That eventually drove the company to discontinue the insulin<p>So insurers are refusing to buy cheaper drugs? What's the story there?
But don't all other companies do the same? Also ones in the US itself? So far any price on any prescription drug I have seen on reddit by US people and companies is far cheaper here. For instance; omeprazole prescription seems to be $90 and otc $32 for almost a month: I pay less than 3 euros here (got them yesterday). Not sure who is doing it, but every US price I have seen is at least 10x higher than it is here in the EU.
> In a release, the Senate Health Committee said it would cost the U.S. $411 billion per year if half of all Americans took weight loss drugs from Novo Nordisk and Eli Lilly. That’s $5 billion more than what Americans spent on all prescription drugs in 2022.<p>If these drugs are effective as they seem to be they might still be worth it at this price. Giving most Americans Ozempic would probably improve people's health more per $ than the current medical system is.
There are three problems: the capital cost of scaling production, PBMs and the absurd margins Novo Nordisk is milking.<p>PBMs are a separate issue. But the grand bargain in the first and last is the U.S. giving Novo Nordisk a loan in exchange for domestic production and a fixed price for the term of the loan, <i>e.g.</i> $50 per month, $9 cheaper than what they charge in Germany [1].<p>[1] <a href="https://www.help.senate.gov/chair/newsroom/press/prepared-remarks-sanders-leads-help-committee-hearing-with-novo-nordisk-ceo-on-outrageous-ozempic-and-wegovy-prices" rel="nofollow">https://www.help.senate.gov/chair/newsroom/press/prepared-re...</a>
Jørgensen pointed out how drugs were only 10% of medical costs and that the real issue was obesity and the many diseases that accompany it making the drugs required in the first place.<p>No one seemed interested in the truth.
Lost all respect for Bernie on this. He’s just blatantly saying that he’s colluding with PBMs. And imagine the absurdity of what he’s saying at the trial.<p>He’s saying he’s had pre talks with PBMs and they are going “we are actually willing to accept lower prices, we promise not to stop buying if you lower prices”
Why would you even be in this situation in a normal market? The willingness to accept lower prices on a product should be automatic and the threat of not buying should be driving prices down not up.
If the market was sane, the PBMs would be going: “Lower prices or we stop buying”<p>But the scam is, PBMs are eating up 70%+ of the “list price” Americans aren’t buying drugs from Pharma companies, they are buying them from their Insurance/PBM/Pharmacy collusion, who dictate both which products you are allowed to buy under insurance and what the “pretend” list price is, so they push it up to maximize their own profits and maximize your copay, which is calculated based on a hypothetical list price they have inflated 4x times while in reality only paying 25% of it themselves.
Oh, oh! Now do US pharma companies... and and, landlords. Yeah, that'll be great. And then private equity. Those are just plain bastards. Is this the end of free market capitalism?