Edwards Takes on Pharmaceutical and Insurance Industries

Watching John Edwards is becoming like watching Lost. Each time we seem to get answers we find new questions raised, and in some cases new enemies. ABC News reports two proposals from Edwards which will not get him much support from the pharmaceutical or insurance industries. While some blog comments have dwelled on this factor, in reality they were never going to back him any ways. If there is any danger, it is that this will further give the impression that Edwards is anti-business and alienate many potential voters.

The biggest proposal from Edwards is to replace the current system in which pharmaceutical companies have a patent on new drugs for several years, allowing them to charge high prices which the pharmaceutical companies claim are necessary to fund further research. I wonder how much of it is also to fund all those glossy brochures on their drugs which wind up in my trash immediately upon receipt. I doubt this proposal has much of a chance, but much more information on the details is needed to evaluate.

Edwards also proposes to require insurance companies to spend 85% of premiums on patient care. He states that currently 30% of premiums go to administrative expenses, but that New York, Minnesota, New Jersey,and Florida impose similar restrictions.

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