The pharmaceutical industry's political influence has been without peer for 30 years, at least. Eye-watering membership fees from its members has allowed its primary lobbying organization, PhaRMA, to fund four figure dinners, lots of brown liquor and many a conference in delightful locations. It has also stood as an reason (or excuse?) for Members of Congress to overcome the obvious conflicts that have arisen back home in the District over globalization. America, it was often said, would be the brains as we let the less developed world be the brawn. What better example of that then an industry curing cancer?
To its unique political power, the pharmaceutical industry owns its near unregulated status - and we can certainly argue if the FDA is even doing that.- which in turned made it a honey pot for the entire health care industry. The diversion of revenue from drug manufacturers to non-profit hospitals, health insurers and employers now amounts to over $200B according to industry consultant, Adam Fein.
A string of political losses, most notably the Inflation Reduction Act, and regulatory challenges like the FTC's intervention in the AMGN/HZNP and the Senate's continued scrutiny of Pharmacy Benefit Managers tells us the music has not entirely stopped for the drug business, but it certainly has slowed. It's power is no longer a given and that has all sort of implications for the entire industry.
Join us next week as we discuss that and more including labor and supply cost trends, our Insured Medical Consumer Model and whether the long-overdue site neutral payment policy will make it to the president's desk, or perhaps just the Senate. And yes, the obligatory comment on AI.
Connection details:
|
Wednesday, May 24th @10am ET (add to outlook calendar) CLICK HERE for event details (includes video and materials link) (https://app.hedgeye.com/feed_items/133644?with_category=48-health-policy) Format: 45 min long with Q & A |
