Big Pharma may have been buttering up the Democrats lately with big campaign contributions, but Barack Obama's healthcare plan looks primed to hit drugmakers. According to Boston Consulting Group, Obama's plan to let the feds negotiate Medicare drug prices could take a big bite out of industry revenues. A $10 billion to $30 billion bite, to be exact.
But, according to the Wall Street Journal Health Blog, that loss could be offset at least partly by the Democratic candidate's efforts to cut the number of uninsured people. If his plans come to fruition, more people will be able to afford prescription drugs to begin with.
On the other hand, Obama's move toward negotiated Medicare drug prices could start a domino effect, inspiring private insurers to demand price cuts, too.
John McCain doesn't mention whether he'd empower Medicare to negotiate drug prices. But he does favor saving money via re-importation of drugs. And of course he's on the record with his characterization of Big Pharma as "big bad guys."
- read the WSJ Health Blog post