Mark Cuban’s Drug Company Could Save Medicare Billions

“Mark Cuban’s online pharmacy was founded to sell prescription drugs at the lowest and most transparent prices possible. As Cuban recently told PBS News Weekend, when it comes to medication, “the reality is the only number that matters is cost. What can we as the retailer or the distributor, buy it for and how low can we sell it? So we decided to take the exact opposite approach that politicians have been taking.”

That approach involves selling generic drugs for a 15 percent markup, plus $3 for pharmacy labor and $5 shipping. The result is that Cuban’s company is able to sell generic drugs at significantly lower rates than typical retail prices. For example, a 30-day supply of Amlodipine, a common high blood pressure medication, costs only $3.60 at Cost Plus Drugs, while the typical retail price is $50.10.

Some drugs have even higher savings.”

“Cuban’s company is restricted to unpatented generic drugs. While Cuban can sell these drugs at a massive discount, it is worth noting that research into new drugs, as well as the costs of clinical trials, is funded by the high profit margins derived from patents. While Cost Plus Drugs is a welcome innovation for drugs that are no longer patented, Cuban’s business model likely can’t fund drug innovation.”

“Cuban himself notes that Cost Plus Drugs isn’t the first company to try this approach, but it is the first to succeed”

“Last week, a new study from the Annals of Internal Medicine estimated that if Medicare Part D plans had purchased generic drugs from Cuban’s company, Medicare could have saved $3.6 billion in 2020.”

“Cuban has been vocal on Twitter about the study, asking President Joe Biden and other political leaders to “have your people call my people and let’s get this done.” However, as exciting as reducing Medicare’s budget sounds, progress on the issue seems unlikely. Legislative solutions to the high price of prescription drugs have often been slow-moving and stalled by partisan bickering.”

Alito’s Junk History About Lochner

“The problem with the Bork/Alito view of Lochner is that it is wrong as a matter of constitutional text and history. Indeed, the drafting and ratification history of the 14th Amendment make clear that the amendment was originally understood to protect a broad range of unenumerated rights, including the right to economic liberty, sometimes called liberty of contract, which was the very right at issue in Lochner.

Consider the words of Rep. John Bingham, the Ohio Republican who chiefly authored the first section of the 14th Amendment, which reads: “No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law.” As Bingham told the House of Representatives, “the provisions of the Constitution guaranteeing rights, privileges, and immunities” include “the constitutional liberty…to work in an honest calling and contribute by your toil in some sort to the support of yourself, to the support of your fellow men, and to be secure in the enjoyment of the fruits of your toil.” In other words, the 14th Amendment was designed to protect, among other things, an unenumerated right to economic liberty.

Even those who opposed the 14th Amendment’s ratification said as much at the time. For example, Rep. Andrew Jackson Rogers (D–N.J.) complained to the House in 1866 that “all the rights we have under the laws of the country are embraced under the definition of privileges and immunities.” “The right to contract is a privilege,” he observed, adding, “I hold if that [the 14th Amendment] ever becomes a part of the fundamental law of the land, it will prevent any state from refusing to allow anything to anybody embraced under this term of privileges and immunities.”

To say the least, the fact that both advocates and opponents of the 14th Amendment agreed on its meaning at the time of ratification is strong originalist evidence in support of the Lochner Court’s reasoning and outcome. Contrary to the junk history peddled by Bork and Alito, Lochner is not a dirty word.”

San Francisco Legalizes ‘Missing Middle’ Housing in the Worst Way Possible

“There’s a clear lesson emerging from the first cities that have legalized “missing middle” housing. The more rules you lift on the construction of these two-, three-, and four-unit homes, the more you’ll actually see built.
San Francisco politicians have absorbed this information and are now using it for evil. On Tuesday, the San Francisco Board of Supervisors passed an ordinance theoretically legalizing fourplexes in the city’s lowest density neighborhoods, but only under conditions that will ensure almost none of this housing actually gets built.”

Biden Administration Just Announced $6 Billion in Student Loan Forgiveness

“Under the terms of the settlement, the Department of Education will forgive roughly $6 billion in loans for 200,000 attendees of dozens of technical schools and for-profit colleges. The settlement also requires the Department of Education to reimburse borrowers who already made payments or even paid off the entirety of their loans. It is not clear how many borrowers covered by the settlement will receive loan forgiveness for outstanding debt and how many will receive full reimbursement for debt they already repaid.”

“Over the past two years, the Biden administration has approved debt forgiveness claims for thousands of former students at for-profit colleges. Earlier this month, the administration announced over $5.8 billion in loan forgiveness to former students of the now-defunct Corinthian Colleges.

However, the Department of Education’s role as the largest issuer of student loans in the country means that it continues to fund colleges and universities that fail to prepare students. Low standards for federal funding incentivize the creation of schools whose sole mission is to collect federal loan money. Even for-profit institutions that do serve the majority of their students still put taxpayers on the hook for attendees who can’t make the most of their education. Debt forgiveness for all borrowers, including nonprofit private colleges and public institutions, would have the same effect.”

“There is clear evidence that “federal student aid fuels the ivory tower’s infamous price inflation, including roughly a doubling, in real terms, of sticker prices between the 1991–92 and 2021–22 school years,” wrote Neal McCluskey, director of the Cato Institute’s Center for Educational Freedom. He continues: “It also makes logical sense: If you give loads of people easy money to pay for one thing, the price of that thing will rise as people demand more of it, and with greater bells and whistles.””

Oregon Health Officials Delayed a Meeting Because ‘Urgency Is a White Supremacy Value’

“The Oregon Health Authority (OHA) is a government agency that coordinates medical care and social well-being in the Beaver State. During the pandemic, OHA was responsible for coordinating Oregon’s vaccination drive and disseminating information about COVID-19—both vital tasks.

The agency’s office for equity and inclusion, however, prefers not to rush the business of government. In fact, the office’s program manager delayed a meeting with partner organizations on the stated grounds that “urgency is a white supremacy value.”

Government employees who are unprepared for meetings should not cite white supremacy as their excuse.”

America’s Founders Raged Against Qualified Immunity, Trade Restrictions, and Anti-Immigrant Policies

“The Declaration of Independence is probably best known for the panache of its opening and closing stanzas. Those bits about “the course of human events” and the pledging of “our lives, our fortunes, and our sacred honor” suggest that the authors and signers understood the political and historical significance of the moment—and, after all, you can’t have a revolution without a little linguistic dancing.
But the bulk of the document—it’s just 1,330 words; take a moment to read it today—is dedicated not to grand statements about self-evident truths or sweeping philosophical claims.

Mostly, it’s a laundry list of complaints about how the government really sucks.”

The Founders Loved Jury Trials. Almost No One Gets One Anymore.

“What is the Sixth Amendment?

You wouldn’t be blamed for having to consult Google to answer that question. The Founders are rolling in their graves anyway.

It’s the right to a trial by jury, and it’s one that society has all but disposed of—despite the Framers’ insistence that it be included in the Bill of Rights as one of the primary bulwarks against government tyranny.

They didn’t exactly mince words. “Representative government and trial by jury are the heart and lungs of liberty,” wrote John Adams. “Without them we have no fortification against being ridden like horses, fleeced like sheep, worked like cattle, and fed and clothed like swine and hogs.”

One wonders what animalistic metaphors Adams would conjure today if he could see the U.S. criminal justice system in motion: one in which about 97 percent of trials are resolved without juries, devoid of the sacrosanct lifeblood that keeps human liberty from death by suffocation.

That tool has been supplanted by the plea bargain. In popular culture, that’s widely seen as advantageous to defendants. In reality, it’s been disastrous. It epitomizes government coercion. It epitomizes what the Founders warned against.”

“The bulk of a prosecutor’s job is not spent in the hallowed halls of a courtroom participating in a high-stakes battle over someone’s liberty, all while journalists wait in the wings to capture the victor’s speech on marble steps. It’s spent in backrooms, with district attorneys “charge-stacking,” or filing multiple criminal charges against someone for the same offense, calculating a grisly potential prison sentence, and offering to make some of that go away—so long as the defendant in question does not exercise his or her constitutional right to a trial by jury.

If they refuse, then they will risk a substantially higher time behind bars, not because a prosecutor views it as necessary for public safety but because he or she dared to inconvenience them with a trial. After all, what the defendant is accused of didn’t change. But trials are expensive. And the government can never be sure when it will win, so better to avoid them where possible.

That latter part—the uncertainty—is supposed to be the point. It’s true that many criminal defendants are guilty. It’s also true that some are innocent and have been forced to pay with their liberty anyway. A person who is not guilty likely wants to go to trial. But why risk a decade behind bars for insisting on your Sixth Amendment right when you could be out in two or three?”

The War on Weed Continues in California, Which Supposedly Legalized Marijuana Six Years Ago

“The cannabis industry, of course, remains completely illegitimate in the eyes of the federal government. That means anyone who grows or distributes marijuana in California, even with the state’s approval, is committing federal felonies every day. But even though President Joe Biden wants to keep it that way, he has promised not to interfere with states that reject marijuana prohibition. So why are the feds not only busting marijuana merchants in California but doing so in collaboration with local law enforcement agencies?

The explanation, as you may have surmised, is that these particular marijuana merchants were breaking state law as well as federal law. Their businesses were not just “illegal” but also “unlicensed.” Yet the fact that unlicensed pot dealers continue to thrive in California is testimony to the ways in which the state has botched legalization. Most local governments do not allow recreational sales, and even those that do frequently impose caps that artificially limit the supply. Bureaucratic barriers, costly regulations, and high taxes are daunting deterrents for weed dealers who otherwise might be inclined to go legit.

Those burdens, combined with local bans, explain why unlicensed sales still account for about two-thirds of the marijuana purchased in California. As a recent report from Reason Foundation (which publishes Reason) notes, California has one licensed recreational outlet per 29,282 residents, compared to one per 13,838 in Colorado and one per 6,145 in Oregon. Worse, the report adds, California’s stores are distributed unevenly across the state, leading to “massive cannabis deserts” where “consumers have no access to a legal retailer within a reasonable distance of their home.””