Wednesday, March 7, 2012

Who Stands to Benefit from Obama's Contraceptive Mandate?

Big Pharma. That's who.
Forget for a minute the religious question and look at who wins big here: Big Pharma. This mandate is not really about condoms or generic versions of “the pill,” which are available free or cheap in lots of places. This is about brand-name birth control drugs and other devices that some consumers swear off because they are too expensive. The Health and Human Services (HHS) mandate requires health-insurance companies provide contraceptive coverage for all “FDA approved contraceptive methods.” It does not insist on generics. And it does not offer any cost containment.
What’s more, the mandate prevents health-insurance companies from having copays or deductibles for the benefit. This is the perfect set up for Big Pharma. Since the drugs will be paid for by a third party (insurance companies, who will pass the cost on to employers and the rest of us), the consumer won’t worry about the price. Expensive brand names will no doubt see demand rise. Ask more health-care analysts why the cost of medical services continues to rise so rapidly and near the top of the list is the fact that a third-party payment system won’t contain costs.
Back in 2009, many observers were surprised when Big Pharma came out in favor of President Obama’s health-care reform bill. The industry spent millions running television ads in favor of the law and industry lobbyists pushed hard for it.  One important reason they did so was the promise that with the new law they would have a new market of millions of new customers. The contraceptive mandate is a perfect example.
It’s important to point out that among President Obama’s biggest financial backers are precisely the Big Pharma companies who benefit from the mandate.
What's a little thing like the First Amendment when there are cronies to pay off?   Via Instapundit.

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