By Clark Howard, Consumer Advocate
JUNE 19, 2013 — A recent case ruling from the Highest Court in the Land will make a big difference in your health care costs to come.
The case involved what are called “pay-for-delay payments” or “reverse payments,” according to The New York Times.
Here’s how this plays out: Big pharmaceutical companies have a medication on which the patent is going to expire. So they have been going to companies that make generics and making them an offer they can’t refuse.
Basically, Big Pharma has been saying to smaller generic manufacturers, “We figure you’ll make $50 million next year selling our brand name as a generic. So we’ll pay you $100 million for you not to make the generic.”
Now the Supreme Court has put the kibosh on that. That means when expensive medications have their patents run out, you’ll be saving big bucks.
This will be a big savings to all of us when you consider that half of all health care is paid for by various levels of government!