Drug companies give away.

By DAVID ESPO, AP Special Correspondent David Espo, Ap Special Correspondent

WASHINGTON – The pharmaceutical industry agreed Saturday to spend $80 billion over the next decade improving drug benefits for seniors on Medicare and defraying the cost of President Barack Obama's health care legislation, capping secretive negotiations involving key lawmakers and the White House.

"This new coverage means affordable prices on prescription drugs when Medicare benefits don't cover the cost of prescriptions," Sen. Max Baucus, chairman of the Senate Finance Committee, said in a statement announcing the accord.

While this may be good news for people like me; old and getting older by the minute. It’s bad news for younger people like you. The drug companies aren’t like the US Government. They can’t just go out and print 80 billion dollars to cover the loss earnings due to this Medicare give away.

In order for drug companies, any company to stay in business, they have to show a positive return on the money that investors placed in their care. Those investors are common US citizens who have drug company stock in their portfolio. This will mean a smaller return on IRA’s and other pension funds.

It will also mean higher prices for those who actually have to pay for their medications. If the return on the invested dollar goes too low, the investors pull out and the company goes under.
So between higher prices and lower returns, you will be paying for this give away.