BIG PHARMA POLITICS: Consumers pressure politicians to do something about rising drug prices. Read More
Half of the health care industry’s $50 billion in global profits went to just 10 companies in the third quarter this year. Nine of the 10 are pharmaceutical firms.
The analysis came from an Axios spreadsheet of financial documents for 112 publicly traded health care corporations.
The numbers show that Americans spend a lot more money on hospital and physician care than prescription drugs. However, pharmaceutical companies operate on much higher profit margins than other parts of the health care industry.
To put this into perspective, drug companies collected 23 percent of the total revenue, but accounted for 63 percent of the profit for the whole industry. The company with the highest profit, Pfizer, made $4.1 billion. Pfizer recently said it will return to its “normal” routine of raising drug prices after a public skirmish with President Trump.
This all means that the health care industry has more financial power now than ever before, which means more cash to fight laws attempting to rein in spending.
What do you think? Have your health care costs gone up? Do you have solutions and/or tips to share with other consumers?