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I don't know much about all this .. was there "price fixing"? afaik, the g-men bought a couple-hundred million doses. If my tax dollars were used, I sure hope it was competatively bid to a good spec.

Why should the g-man buy this in the first place? Why shouldn't the Health Providers be footing the bill? After all - if one get's sick enough to go to the Dr. or Hospital they are suppose to be pickin' up the tab as part of the deal. How about the Life insurance people - should they kick in too? If ya die from this they have to pay out too?

But let's assume We The People decide it is in our national interest for the government to get involved. If prices for "critical items" like the H1N1 vaccine (as the LTE writer imples) float to match supply and demand then access will depend on one's personal income quintile and/or whether or not one's mother-in law happens to be some-one.

Look at it this way - is America really better off assuring first the survival of the Simpson Sisters?

Apparently there is not time, in the case of certain flu strains, to open the market to a bidding war. I don't know how it is decided what company will make emergent vaccines. All I know for sure is, in such situations where we need something yesterday to contain a threat so many people, I do not want my government assing around. I am reminded of the old saying, "What is the point of closing the barn door after the horses are out?"

"When more producers enter the market, two even more beautiful things happen: Supplies increase and prices decline to “affordable” and “fair” levels."

This does not compute in Obamanation.

"Supplies increase and prices decline to “affordable” and “fair” levels. This is true with HDTVs, cars, microwaves, food, clothing and, yes, vaccines."

Might I add that innovation also increases as everyone looks for a way to make a better mousetrap. Novartis AG, an eeeeeeeeevvvvvvviiiiiillllll pharma corporation has built a better mousetrap for manufacturing a flu vaccine. Ironically it will result in more jobs for fellow North Carolinians over the next few years.

http://www.manufacturing.net/News-Novartis-To-Make-Swine-Flu-Vaccine-Fro...

Mr. Dew's comments are off target for several reasons.

First of all, there are several companies making H1N1 vaccine. They use the exact same process to make seasonal flu vaccine, and were all ready set up for production when the need arose.

The reason the vaccine has been in short supply is because all of the manufacturer's have been shipping the vaccine as soon as it came off the production line, instead of stockpiling it first the way the do for seasonal flu. Thus, the supplies have been small and piecemeal. However, the CDC was in agreement with the decision, the reasoning being it was better to get small supplies out quick than large supplies later. I agree with that rationale, even though it has meant we don't have the drive by on demand we are used to in this country.

Secondly, Mr. Dew's thought processes are much mistaken when it comes to the pharmacuetical industry. There is plenty of competitoin, yet some of the most effective, least inexpensive medications can run in short supply because Big Pharma does not make enough profit off these drugs.

An example of this is Narcan (naloxone), an opiate antagonist used to treat narcotic overdoses. It was in short supply a few years ago even though it is cheap to make because the manufacturers wanted to focus on production of Cadillac drugs under patent that bring them their biggest profits: drugs like Viagra, Lipitor, and so on. And that's just one example.

Finally, there are no price caps on vaccines or pharmaceuticals in this country. The manufacturers can charge whatever they want. The issue is reimbursement from Medicare, Medicaid, and the insurance companies. Doctors aren't being reimbursed for their costs to buy, stock, and give vaccines. In fact, they lose money, not just on their operational costs but on the cost of the vaccine itself. Therefore many doctor's offices are not buying them. This is true not just for the flu vaccines, but for tetanus, MMR, Hep B and many others.

Responses to "panacea":

"First of all, there are several companies making H1N1 vaccine."

[tdew] We agree - there use to be dozens (Twenty-five in the U.S. alone, now there are two, although a third in opening in Holly Springs) and now there are "several". I will stick with calling it "few".

They use the exact same process to make seasonal flu vaccine, and were all ready set up for production when the need arose.

[tdew] We agree - the same process - the archaic chicken egg process ref'd in the LTTE. The above mentioned Holly Springs facility will be using cell technology - a vast improvement, but one that could have been in process years ago had the gov't not interfered.

"The reason the vaccine has been in short supply is because all of the manufacturer's have been shipping the vaccine as soon as it came off the production line, instead of stockpiling it first the way the do for seasonal flu. Thus, the supplies have been small and piecemeal. However, the CDC was in agreement with the decision, the reasoning being it was better to get small supplies out quick than large supplies later. I agree with that rationale, even though it has meant we don't have the drive by on demand we are used to in this country."

[tdew] Please explain this further - From what I understand, you argue that if the manufacturers stockpile the H1N1 vaccine until January, there will be no shortage? Bottom line, we would have people without the vaccine today either way.

"Secondly, Mr. Dew's thought processes are much mistaken when it comes to the pharmacuetical industry. There is plenty of competitoin, yet some of the most effective, least inexpensive medications can run in short supply because Big Pharma does not make enough profit off these drugs. An example of this is Narcan (naloxone), an opiate antagonist used to treat narcotic overdoses. It was in short supply a few years ago even though it is cheap to make because the manufacturers wanted to focus on production of Cadillac drugs under patent that bring them their biggest profits: drugs like Viagra, Lipitor, and so on. And that's just one example."

[tdew] Please re-read the LTTE. Pharmaceutical industry competition is not being questioned. Competition within the Flu vaccine market is.

Finally, there are no price caps on vaccines or pharmaceuticals in this country. The manufacturers can charge whatever they want. The issue is reimbursement from Medicare, Medicaid, and the insurance companies. Doctors aren't being reimbursed for their costs to buy, stock, and give vaccines. In fact, they lose money, not just on their operational costs but on the cost of the vaccine itself. Therefore many doctor's offices are not buying them. This is true not just for the flu vaccines, but for tetanus, MMR, Hep B and many others.

[tdew] Not sure where you are getting this info, but it is incorrect. Please see other posts above - Someone else actually provided a link to a WSJ article that you will find useful.

http://online.wsj.com/article/SB1000142405297020373940457428660260041854...

ALSO .. up to now only one Blogger here-in has questioned the rationale for the g-men financial comittment to the H1N1 Vaccine .. interesting.