Cost of Drugs Increasing, Oh My!

[JackLuis]

The Drug industry made a deal to cut the price of drugs $80 BIllion over ten years. BUT!

They are raising the prices, in advance of the Health Care Legislation's passing. Hmmm?


Oh, and they have been giving rebates to their distributors?

Somebody tell me what is the difference between Rebates and Kickbacks?

 

[R. Richard]

Oh, and they have been giving rebates to their distributors?

Somebody tell me what is the difference between Rebates and Kickbacks?

A rebate is a publicly declared tactic, designed to boost sales by cutting prices or a legitimate lowering of prices for large orders. Large orders cost less per unit to deliver and service, so the rebate is justified.

A kickback is a bribe. Generally a kickback goes into the pocket of one/a few individual(s).

 

[Jenny_Jackson]

You don't suppose the Drug Companies see that the Health Reform Bill is going to die in the Senate so they can raise prices now then publicly cry about the raising price of medicines while stuffing profits in their pockets do you?