Government would pay 25 percent of seniors' drug coverage premium to a private, for-profit company. Since companies' plans would vary, there would be no guarantees on the cost of drugs or what proportion of that cost would be covered. These contortions are being considered because neither party believes the government can afford drug coverage at today's inflated prices. U.S. seniors pay 81 percent more for the same drug than Canadians do, and 112 percent more than Mexicans do. And, to top that, Big Drugs has increased its campaign contributions to national politicians by 57 percent between 1995 and 1999.
Individual seniors pay the highest prices in the world.
The payoff is good. Profits for the top seven drug firms average 21 percent.