| The biggest health care reform act since Medicare | | | | informed industry observers believe that the industry |
| was created in 1965 has just been signed by the | | | | won't be in any worse shape than it suffered during |
| President- amidst more controversy than any bill | | | | the Clinton era when scrutiny was very high, or more |
| passed in the last twenty years. How will this affect | | | | recently when the sector came under significant |
| the pharmaceutical industry? | | | | criticism for huge profits during the period of |
| This bill is estimated to carry a $940B price tag, but | | | | economic corrections |
| will insure an additional 32M Americans by 2019. | | | | As pharmaceutical consulting firms point out, patents |
| However, it does include hefty taxes - over $70B, | | | | have expired, and generic availability has increased, |
| and HMOs. Insurance companies won't be able to | | | | meaning the industry has been forced to become |
| deny new customers based on pre-existing | | | | more "lean and mean". in its approach to generating |
| conditions, and companies with over 200 workers will | | | | revenues. |
| have to automatically enroll employees in some form | | | | This bill hits the industry with over $10B in increased |
| of insurance coverage. | | | | taxes to pay for the expanded insurance coverage |
| Although government subsidies for the uninsured | | | | promised. This is probably going to offset at least |
| won't kick in until 2014, costs will be incurred almost | | | | some of the gains made as a result of having a |
| immediately, which is why many have opposed this | | | | larger available customer base. And it has been |
| plan. Cuts in Medicare will also be used to partially | | | | argued that more expensive, and controversial |
| fund the bill, and this is causing concern in certain | | | | treatments that would have led to miracle cures, |
| quarters as Medicare is considered to be a "sacred | | | | saved lives and higher profit margins will be slower to |
| cow" to many. | | | | reach the market under this plan. |
| Although many are questioning the effect this will | | | | Given the length of time it will take to create |
| have on the development of new medicines, | | | | insurance coverage for these millions of Americans |
| pharmaceutical companies large and small are | | | | who stand to benefit under the bill, it will take some |
| expected to be the big winners in the end, as many | | | | time before the expected benefits will accrue. In the |
| more people will be insured and able to afford | | | | meantime, we can expect the pharmaceutical giants |
| life-saving medications, new treatments, and | | | | to continue their consolidation by purchasing smaller |
| maintenance medications that would have been | | | | companies, expansion into new and emerging |
| simply too expensive for them before this legislation | | | | markets, and lobbying for greater protection from |
| was enacted. | | | | cheap, foreign-made "knock-off" drugs that are |
| Democratic leaders are claiming that whenever a | | | | dangerous to both patients and branded drugs profit |
| business sector gains a larger customer base, it wins! | | | | margins. |
| Obama Care is no exception to this rule, as many | | | | We can also expect the Obama Care controversy to |
| more children and elderly will gain coverage which will | | | | persist long after the ink has dried on the signed |
| increase the number of prescriptions for medicines | | | | legislation, as opponents protest over loss of |
| and other health care services. | | | | freedoms, and proponents rejoice at the expansion |
| The amount of money, time and energy spent by | | | | of coverage. We can only hope that the promised |
| Big Pharma in promoting this bill has left the American | | | | benefits actually happen, and are not watered down |
| public suspicious and a bit cynical about industry | | | | by amendments that are almost certain to follow. |
| intentions. Will this tarnish industry perceptions? Most | | | | |