Will Healthcare Reform Limit Patient Choice And Further Empower Big Pharma?

Since the passage of the Senate’s healthcare reform bill, those in favor of the bill have emphasized the fact that it will expand insurance coverage to approximately 30 million new people who currently are uninsured, stop insurance companies from dropping insurance to those who get sick, and prohibit caps on coverage in cases of catastrophic illness.

What is not emphasized is the fact that people will be pushed towards pharmaceuticals and away from alternative treatments like supplements and cheaper over the counter medications such as antihistamines, cold remedies and vitamins. This contributes to the windfall that Big Pharma negotiated for itself. Unless it is removed during the reconciliation process, the Congressional healthcare reform bills as they currently stand will limit a patient’s choice to use alternative treatments or medications that are not prescribed by a physician, and therefore are not controlled by the pharmaceutical industry. For example:

1.)    Those with pre tax medical spending accounts such as flexible spending accounts (FSA) and health savings accounts (HSA) will pay 40% more for non-prescription medications. Instead the more expensive prescription drugs will be covered.

2.)    The discount negotiated by the pharmaceutical industry is applied to Brand name drugs not cheaper generic drugs.

On one hand, given the recent high profile celebrity deaths due to prescription drugs, it leads one to question the government playing an active role in encouraging the American love affair with poly pharmacy. On the other hand it makes one question the Government’s seriousness when it says that healthcare reform is essential to controlling healthcare costs. In short, giving up 2% of their profits for the next 10 years, in order to get business from the 30 million new people who will be mandated to carry insurance is a small price for the pharmaceutical industry to pay – so much for bending the cost curve.