If Medicaid in Washington state has been reimbursing pharmacies at 86% — and now 84% — of the drugs average wholesale price, of course pharmacies are going to have to stop accepting Medicaid. Not only do the pharmacies lose money on the drug itself, but the pharmacies also lose out on the profits made from selling prescription medications, meaning that they are working for free — no salaries covered, no overhead paid — even when you exclude the loss on the drugs themselves.
ObamaCare is a great unknown: the proponents make claims concerning how well it will perform, while the opponents don’t believe that the claims are valid.
But if past performance is any indicator of future results, we can look at how government run health care has done in the past, and the results in looking at Medicare — which seriously underpays for the treatment of Medicare patients — and Medicaid are instructive.
President Obama has come up with a plan which continues to rely on the for-profit health insurance industry and the for-profit health care industry. At least, in that regard, he recognizes what has worked so well for most Americans.
But the President has also come up with proposals which would make earning a profit far more difficult for those industries, and if they can’t make a profit, they go out of business. When I look at how the existing socialized health care coverage systems of Medicare and Medicaid perform, I see more evidence of a government which may say it appreciates private enterprise, but has absolutely no notion of what it takes to keep private enterprises running.