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Buy a Healthcare Fund to Pay for Your Rx

BenWPBenWP
in Fund Discussions
I just picked up two prescriptions for meds we've been taking for several years and which are Tier One generics on our prescription plan. One rose in price from $1.79 to 2.89 and the other from $10 to $40. The lower prices had been in effect for at least two calendar years. We did not change the drug plan from 2014 to 2015. The pharmacist told me I am not to only one to register sticker shock since Jan 1st. No wonder our healthcare stocks and funds are doing so well…

Comments

  • TedTed
    @BenWP: Yes, My drugs went from $10 per generic drug for a ninety day supply to $25 for the same seven generics. For three years I paid $280 for my meds, I'm now paying $700.
    Regards,
    Ted
  • [Deleted User]
    edited February 2015
    The user and all related content has been deleted.
  • Tampabay
    Buy healthcare investments to pay for your retirement, forget drug costs...share in the profits
  • TedTed
    @TPA: Come to think of it, that's not a bad idea ! Now I know why I'm so heavely invested in general healthcare and biotech stocks and funds.
    Regards,
    Ted
  • BenWPBenWP
    It has been said that an ironic message is the most difficult to convey electronically. My post above was written with a Voltairian smirk.
  • Gary
    WORKERS REVOLT:
    THE GREAT CAT
    MASSACRE OF THE
    RUE SAINT-SEVERIN

    INTERESTING NEEDS MORE BODY
    GARY
  • heezsafe
    @BenWP
    Salute, Voltaire: "Show me a great fortune, and I'll show you a great crime."

    And, so it is with the healthcare industry--- their profits are coming out of our pockets, both directly (see above) and indirectly (so many tax credit cookies you couldn't begin to count them all). And by investing in their stocks and MFs, you are providing them with further subsidy, to make it all possible.
  • scott
    edited February 2015
    heezsafe said:

    @BenWP
    Salute, Voltaire: "Show me a great fortune, and I'll show you a great crime."

    And, so it is with the healthcare industry--- their profits are coming out of our pockets, both directly (see above) and indirectly (so many tax credit cookies you couldn't begin to count them all). And by investing in their stocks and MFs, you are providing them with further subsidy, to make it all possible.

    As far as I'm concerned, no one's going to stop them (and I'm not going to get political because on this board that goes nowhere because people are so religious about their political beliefs.) Now everyone is paying for insurance or paying a penalty and those who are paying insurance are finding that it's going up just as quickly as it has been for a while now (if not quicker.)

    So, that said, if I can't beat them, I'm happy to join them. I focus on investing in "needs" over "wants" and health care investments are a core of that. Demographics, trends, it's all tailwinds for the industry.
  • BenWPBenWP
    In the spirit of disclosure, I've already paid for one daughter's wedding with profits from CELG, so I am not complaining.
  • Tampabay
    Healthcare is Always "Overpriced" until you need it...How much is your life worth?
    Just pay for it.... and try to take advantage of an investment opportunity (ies)
  • heezsafe
    edited February 2015
    That Q4 retail spending was awfully weak. Why didn't those darn consumers go out and buy thangs with that gas savings money? After all, it was Xmas, for "Christ's sake." Well, we did:
    image

    Bon apetite (though, apparently, on a small budget; food vs. HC)! This time around, Santa shorted you, it was his turn to get the present. And Santa liked it so much he's probably thinking about making the change permanent!

    @Ted It's like the margin call from outer space. Whether you invest long or short, every month your brokerage calls to tell you that you need to borrow more from the future just to maintain your position, or they'll close you out.:)
  • scott
    edited February 2015
    LOL @ that spending chart.

    http://www.bloomberg.com/news/articles/2012-06-13/health-care-spending-to-reach-20-of-u-s-economy-by-2021

    Health-Care Spending to Reach 20% of U.S. Economy by 2021

  • [Deleted User]
    The user and all related content has been deleted.
  • CrashCrash
    Just did income taxes with my tax guy yesterday. Had to prove I'm covered. Coverage is a good thing. The way this is being done is Operation FUBAR. I refer specifically to the way Massachusetts administers all of this junk--- since 2006.
    "Gov. Charlie Baker has named a new executive director for The Connector and recently asked for — and received — the resignations of four members of The Connector board." Reason? I'm guessing...um.... um.... because the entire thing is stuck where the sun don't shine.
    "...The Board oversees the state’s health care law. In a letter, Baker said he’s establishing a new leadership team and wants to take a fresh look at The Connector and improve the operation of that agency..." Yup.
    http://wwlp.com/ap/gov-baker-forces-resignation-of-4-health-connector-members/
  • msf
    All most people have to do when they file their taxes is say they were covered by health insurance. Like most stuff on your tax return, you only have to prove it if the IRS asks.

    From the IRS    : "The IRS does not require taxpayers to submit documentation of health coverage with their tax returns. However, gathering documentation in advance will help return preparation at tax time. "

    Your tax preparer was being diligent in ensuring that you would be able to respond to an IRS inquiry.

  • JohnChisum
    I would have thought that the IRS already knew you had coverage or not? Are there not some other circumstances with 0Care that one might have to pay extra taxes?

    I'm drawing a blank as to what those conditions are.
  • Tampabay
    as I go down that list of "personal Consumption" categories I See EVERY one of them Decreasing in my Life.... Except Healthcare
    including Food and Beverages....Know I wont eat or drink as much (spending) as I Did
    Depending on Insurance changes and your Health situation spending could be 50%+, that's kinda scary...buy supplement policies?
  • [Deleted User]
    The user and all related content has been deleted.
  • DavidMMP
    Please keep in mind that both pharmaceutical and biotech stocks were flat for almost a decade and started to move in the right direction only three years ago.
  • AndyJ
    edited February 2015
    JohnChisum said:

    I would have thought that the IRS already knew you had coverage or not?

    Just fyi, the health care coverage line is # 61, on the back of the 1040 in the "Other Taxes" section.
  • catch22catch22
    edited March 2015
    Fido bio fund, FBIOX , from Jan, 1999 to date...........
    You may move the 4,064 day slider bar from either end to shorten and/or look at other date ranges.

    chart link
  • msf
    JohnChisum said:

    I would have thought that the IRS already knew you had coverage or not? Are there not some other circumstances with 0Care that one might have to pay extra taxes?

    I'm drawing a blank as to what those conditions are.

    With respect to whether the IRS knows you had coverage - it appears that there are reporting requirements imposed by ACA on the providers of "minimum essential coverage" (MEC), though I haven't checked deeply into these. On the other hand, there are protections for "personal health information" (PHI) built into HIPAA.

    Here's an articlediscussing this. It sounds like the IRS does get the information it needs (including SSN), but I'd still like to see that spelled out more clearly.
    http://www.workplaceprivacyreport.com/2015/02/articles/hipaa/aca-information-reporting-creates-data-privacy-and-security-issues/

    It seems to depend on what constitutes PHI ...
    "The Affordable Care Act maintains strict privacy controls to safeguard personal information. The IRS will not have access to personal health information,” said HHS spokesperson Erin Shields Britt, to Kaiser Health News.
    http://www.healthcareitnews.com/news/irs-face-lawsuit-over-theft-60-million-patient-health-records

    As far as extra taxes go, remember that it was the ACA that added the 3.8% net investment tax and the 0.9% Medicare tax on wages above certain thresholds. Though I doubt that's what you had in mind when you asked whether there were other situations where the ACA added taxes.
    http://www.irs.gov/Affordable-Care-Act/Affordable-Care-Act-Tax-Provisions

  • linter
    catch22: looking at that chart makes me want to bail in the worst way. man, when the correction comes, it could be huge.
  • scott
    linter said:

    catch22: looking at that chart makes me want to bail in the worst way. man, when the correction comes, it could be huge.

    Biotech corrected when Yellen said it was overvalued, then it ramped again and has continued.
  • Tampabay
    IMO: Biotech is looking for homeruns, you can strikeout a lot..... Healthcare investing is a no-brainer, UNLESS you think there is going to be less money spent and profits made in the Healthcare Business in the future
  • PRESSmUPPRESSmUP
    You're betting on the come in regards to biotechs who currently have no revenue....just make sure you know what you own.
  • scott
    edited March 2015
    Amgen (AMGN) pays a pretty decent dividend, Gilead (GILD) just announced that they will start paying a div. I do think you're going to see - little-by-little - a few more of the largest biotechs start paying a div. Many of the smallest biotechs are a lottery ticket bet.
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