curmudgeon wrote:https://www.cbsnews.com/
My bad. It’s a climate, health and tax bill. Thank God for the Democrats! They really know best…..
RiverDog wrote:No, you got it right in the first place. They're calling it the "Inflation Reduction Act", but it's anything but.
Although there are some things in it that I like, such as empowering Medicare to negotiate prices with drug companies (I thought that they already did), the spending in it will do nothing to halt inflation and in fact, may actually increase it.
Inflation may well come down as gas prices have been falling rapidly for a month and that alone should at least reduce the upward pressure on prices, but it won't be due to this legislation. All Democrats know how to do is spend.
Aseahawkfan wrote:I'm surprised myself. I can't help but think that is false reporting. I've read Medicare like other insurance companies negotiates bulk prices on medications. I'm not sure what this changes. I don't believe at all there was no negotiation as I know for certain Medicare only pays limited amounts for approved drugs and other medical procedures. So not even sure what they mean with this change unless they plan to finally open up buying cheap drugs from Canada.
Aseahawkfan wrote:I think inflation should drop quite a bit in this next reading. Probably to the 5 or 6% range.
RiverDog wrote:The more I think about it, the more it's apparent to me that Medicare doesn't do very much price negotiations with drug companies. They approve drugs for coverage under Medicare, but they don't negotiate contracts.
Medicare's prescription drug plan is called Part D (not for 'Drugs', but because it follows A,B, and C). It is extremely complicated as it involves dozens of different private insurance companies that all negotiate different contracts with various suppliers. Their premiums can vary, from as little as $7/month to over $30/month. They have a matrix where you enter your prescription drugs that produces your best value drug insurance company. My wife has 11 prescription drugs. Make just one change, if your doctor wants you to try a certain drug, for example, it can change the matrix dramatically. Then they have what's known as the 'donut hole', a gap in coverage after your expenses pass the initial coverage limit and before you enter the catastrophic category.
There can be a huge difference in the price of a drug from pharmacy to pharmacy. My wife once had a drug that Walmart was selling for over $100. Costco had the same drug for less than $10. It all depends on when and what terms different pharmacies negotiate their contracts, so it pays to shop around. The problem is that people that live in remote areas don't have a couple dozen pharmacies to choose from.
I haven't taken a look at the details of this bill, if it can help level out the 'wow's such as I mentioned above while not taking away financial incentives for drug manufacturers, but I think it's possible if it's managed right.
I don't think it's going to drop that fast. Many companies don't lower prices until their current inventory is used up as they've already sunk funds into it that they have to reclaim. My former company negotiates contracts on an annual basis with both their raw suppliers and with their large customers.
For example, McDonald's and Burger King won't get cheaper ground beef if their contract expires in March of 2023. But they might get cheaper soft drinks if that contract expires next month. Inflation is likely going to drop some, or at least not go up as fast as it has in past months, but you're not going to see it drop off a cliff.
Aseahawkfan wrote:Hmm. You would know that better than I do. I am not on Medicare yet. I'm not sure how that all works. It seems real strange they don't negotiate drug prices given the volume they must buy drugs and the like in. Sounds downright stupid management.
I don't think it's going to drop that fast. Many companies don't lower prices until their current inventory is used up as they've already sunk funds into it that they have to reclaim. My former company negotiates contracts on an annual basis with both their raw suppliers and with their large customers.
For example, McDonald's and Burger King won't get cheaper ground beef if their contract expires in March of 2023. But they might get cheaper soft drinks if that contract expires next month. Inflation is likely going to drop some, or at least not go up as fast as it has in past months, but you're not going to see it drop off a cliff.
Aseahawkfan wrote:5 to 6% isn't low. But inflation is massively affected by oil prices and oil prices have dropped substantially since the last reading. Should help, but won't necessarily drop it close to The Fed's goal of 2%.
RiverDog wrote:The Fed is planning on incremental increases in the prime lending rate once every 6 weeks through the first quarter of 2023. That alone tells us that significant inflation is going to be around for a while.
You're right, the price of oil is perhaps the largest single driver of inflation, and it's coming down is a good sign. But it's not happening overnight. We're going to have to deal with significant inflation above the rate at which wages are rising for at least another 6 months.
I-5 wrote:Since I don't live in the US now, I haven't been following all the legislative news...but I'm defintely hearing less 'Sleepy Joe' and 'Let's Go Brandon'. Sleepy Joe seems like he's been pretty busy despite getting covid-19 twice.
Aseahawkfan wrote:You're in Canada? I thought that was Northawk. Maybe he is in Canada too.
As far as I know Biden's poll numbers haven't changed much. This Inflation Reduction Act isn't particularly viewed as much by either side. It's as usual too much to Republicans and not enough for the Democrats.
They are currently looking at alternative candidates on the Democratic side for Joe Biden because some in the Democratic Party are not confident in voting for him.
A lot will be decided in the midterms. Roe vs. Wade ruling was a big help to the Dems who were heading for problems. A lot of people are more interested in State elections now since the States states decide abortion law now. So people have to be more selective in who they choose at the state level.
I don't care that much myself. All I care about at the moment is Trump being done. The rest of it is just a bunch of garbage by two political parties that aren't doing much to make this country very enjoyable to live in.
I-5 wrote:Yup, Canada. Vancouver to be exact. Makes sense that Northhawk might be in Canada, too. I swear every time I visit my family in Seattle, the streets keep changing. I grew up in Seattle but now I need a GPS to navigate some of the new streets.
Hawktawk wrote:I trust Joe Manchin . Besides elections have consequences . Dems believe in climate changes and taking care of the less fortunate among many whacked fringe ideas . Chump lost and his evil traitorous acts after losing cost republicans the senate . It’s 100% his fault what is happening now . Besides I watched him engage in 1.3 trillion annual deficit spending for 3 years before the pandemic then dump trillions in fed funds into the suddenly too big to fail market to create that bubble as many ma and pa corner restaurants went bankrupt . I’m sure none of that contributed to inflation . The trump party sucked. No better then democrats Unless you’re wealthy . Truth is in the middle but nobody is in the middle .
RiverDog wrote:I like Joe Manchin, too, but he's too old to be considered a viable candidate for POTUS. He'll be 75 here in a couple weeks. You're right, there is no candidate from either party that is 'in the middle". Our choices have been horrible.
I believe in climate change, too, but I don't believe in the approach the Dems are using to address it, at least not in this neck of the woods. They've wrapped their arms around wind and solar and insist on breaching the LSRD's without a viable means to replace the electrical generating capacity we'd be losing while not recognizing the role they play in transportation and agriculture.
While I wouldn't give DJT 100% of the blame for "what's happening now", IMO he is the largest single factor and bears the lion's share of the responsibility.
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