Yesterday, I had the opportunity to hear one of the Illinois Members of Congress talk about Medicare D and how proud the government is that the program is significantly under budget.  He claimed this was because the government allowed the free market and competition to work and that this should be the model for healthcare going forward.  What concerns me is what is behind the curtain and how this “free market” or rather “managed market” is impacting the branded pharmaceutical industry.

Most experts agree that Medicare D is significantly under budget because of a couple major factors.  First, there is an underutilization of the program.  Some would argue that this is because our seniors are healthier than expected and don’t really need that much medical care.  It seems odd that for some reason, since the budgets were established all of a sudden, with all the issues around obesity, diabetes, hypertension and other diseases, that our seniors are in need of less medical care.  A more plausible reason for the underutilization has to do with the economy and the fact that seniors, like everyone else in the country, have been going to the doctor less over the last couple years. Continue reading →