The extra cost can vary up to 50%, which is the approximate discount I pay if I buy a certain drug from Canada. That is to say, I pay slightly less that half the U.S. cost if I buy a certain drug from Canada. $103/ month vs. $218/ month. I claim that a good part of the extra money goes to the drug innovator.

I'm puzzled by the statement that:

"Middle income and lower middle income Americans pay the highest drug prices in the world. The prescription drug plan provides an important element of support for drug development, while giving relief to the folks who pay the very highest rate of drug development taxes."

I'm not sure what "drug development taxes" means. I'm also under the impression that the majority of those benefiting from the prescription drug plan are elderly citizens, who are the wealthiest age demographic. If the intent of the drug plan was to help lower- and middle-class folks, this intent was awfully well hidden.

My point is that as transfer payments go, this one helps two ways. It benefits the intended recipient and it directly helps fund drug research. Without the drug benefit I would be buying drugs from Canada, (and not funneling money to the innovator) or be going to generics even though - through my own experience - they don't work as well.

Thanks for the always pertinent and useful posts from you, and for OTB in general.

Nobody on the left considers Bush to be a conservative.

I guess that means the Bush=Hitler meme is off again, huh, Anji?

Or, is it that Rove is Hitler?
Or is it Chaney, today? You guys keep changing your story...

You can't make yourself more properous by going deeper and deeper into debt nor can you make yourself better off by offering larger and larger transfer payments. Eventually the party will end and there will be one mother of a hang over.

YAJ,

Sorry, I think those forecasts are wildly optimistic.

Edgardo,

Projections make it into the the news all the time. Any discussion about Medicare/Social Security shortfalls for example.

I generally don't reply to bigoted jerks, but am making an exception. Apparently you are not well informed enough to know that in the current White House, Rove is the brain, and Bush is simply the mouth...

It is funny you bring up Regan and also call Bush "slow witted". That is what they used to call Reagan, now many believe him to be one of the greatest presidents.

You call Bush slow witted, yet he kicked the democrats butt all over the place, and even with recent elections still has veto power over the whole bunch. LOL! It is democrats that are slow witted! Look in the mirror liberal!!!

I will point out that congress approved the plan so I am more likely to call it a gubmint program than a Bush program. It is yet another example of the folly of looking to government to solve every problem whether real or perceived.

I am especially frustrated with those who call for something to be done and then complain when it is. Many times it's best to do nothing.

Nobody on the left considers Bush to be a conservative. There have been a lot of principled conservatives who were worthy of respect. Pres. Reagan comes to mind.

Bush is a slow witted man who has had things handed to him his entire life. He does not understand the value of a dollar, for one thing. About all he is good for is spending money that is not in hand. He has no respect for the liberties handed down by the founding fathers. He is certainly no conservative.

What the heck is your problem, Steve? News Flash: Bush is a politician. They do things like that with the expectation it will help them win re-election. Are you new to this game???

I read it. The WSJ was talking about ALL the entitlement programs. And this was an article, not an editorial. I guess you are one of those liberals who take things out of context.

Besides, the economy, as the article stated, is doing GREAT! Great job President Bush. He gets way to few accolades.

When the huge "plans" negotiate lower prices for drugs, the drug companies up the price to uninsured drug purchasers. All of the protected classes, i.e. employees of government, and education, or with unions, who are usually overpaid to begin with, get costly drugs for very little money.

I repeat; regular people pay much more than they should because their prices have been increased in an effort to make up what the "plans" have negotiated out of their prices.

"The largest drug company in the world, Pfizer, has been in a bit of trouble lately. It recently announced it would fire 10,000 staff, close two factories and 5 research facilities. And the stock market has beaten up its share price. At issue is the paucity of new drugs coming on line. Poor management and bad luck may be in part to blame, with high-potential drugs failing at the last clinical hurdle. But some of the problem is the inability of Pfizer, and other innovator firms, to charge efficient prices for their drugs around the world."

http://techcentralstation.com/

Steve: You are aware of what this link speaks of. Middle income and lower middle income Americans pay the highest drug prices in the world. The prescription drug plan provides an important element of support for drug development, while giving relief to the folks who pay the very highest rate of drug development taxes.