There have been two stories in the Swiss newspaper “Tagesanzeiger” lately, which get my goat. I do not deny the benefits of modern pharmaceuticals. Compared to my childhood days, modern medicines are way more efficient and ailments, that constituted a death sentence then, can now be cured or at least made more bearable. But I refuse to think of the pharma industry as a big benefactor of humankind. Here’s why.
Big Pharma wins, you lose I
Medicines are there to cure you.
Wrong. Medicines are there to treat your chronic condition for as long as possible for a prize as high as possible. Thousands suffer from neurodermatitis here in Switzerland and millions more, of course, elsewhere. The affliction goes from mild to almost unbearable. From small ulcers if you eat the wrong stuff to inflamed excema that cover most of a patient’s body. I have a very mild form, which can easily be controlled by good skin treatment products and avoiding food such as shellfish or nuts. I’ve seen other cases much worse.
There is a cure. Two students Karsten Klingelhöller and Thomas Hein have developed a skin cream made from Avocado oil and vitamin B12. A pink coloured ointment, which has no side effects and was successfully tested in clinical tests. The product has been patented and even given a brand name “Regividerm” the patent’s worth is estimated at 936 Mio US Dollars.
Those two have made it! Helped the suffering!
Not.
Not a single parmaceutical company contacted was interested in taking the cream into their product portfolio. The thing is: You don’t earn money by healing the chronically ill at a low price.
Big Pharma wins, you lose II
If you want to put health reform under the microscope, why not use Europe. We all have a public health care scheme, but to different degrees. And the differences show. Take today’s headline on one of Switzerlands most popular newspapers the “Tagesanzeiger”: “The Swiss pay thirty times the price for generic medicine as the people in the Netherlands do.”
So why would that be?
Switzerland’s public health system mandates insurance for everybody, but is run through private insurance companies. There is no public option, however and the control of drug prices is not in the hands of the insurers.
The Netherlands’ system is not so very different today, but they have reformed it only three years ago from a public option system.
What is the difference now?
Switzerland is the home of pharmaceutical industry giants Novartis and Roche. The fact that Switzerland is a small country makes two giants like that huge contributors to the GDP.
The Health Ministry is in charge of drug prices and asks for prices of generic medicines to be 40% – 50% lower than the listed prices of the originals. But: The listed prices are a phantom. No insurance company in the Netherlands, nor in Germany or in Denmark, nor France or England accepts those prices, they have long since negotiated much lower ones with the drug industry. They either get a rebate on the originals or mandate the use of generics, unless the doctor prescribes the original. They got there (The Netherlands, too in the recent past) by using the power of a public option. Which affects, of course the price of healthcare.
The Swiss authorities refuse to change their method of determining prices and we are paying the higher insurance premiums.
The thing is: No public option, you pay the price!
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