Big Pharma's profitable philanthropy
A roundup of the week's best financial stories from across the web
Here are three of the week's top pieces of financial advice, gathered from around the web:
Big Pharma's profitable philanthropy
"Half of America's 20 largest charities are affiliated with pharmaceutical companies" that fund copayments on prescriptions for drugs that they manufacture, said The Economist. The drug companies set up the charities to defray the costs of copayments on expensive drugs, but this has "the fortunate consequence of making their customers price-insensitive." The charity run by AbbVie is the third largest in the country, while Bristol-Myers Squibb runs the fourth largest. In total, 13 companies spent $7.4 billion on these programs in 2016. Having copayments gives patients incentive to stick with the companies' drugs instead of opting for cheaper generics — ultimately helping the drugmakers' bottom line. The companies can then deduct up to twice the cost of their donations from pretax profits.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Doing your own tune-up
Do-it-yourself auto repair shops are popping up across the U.S., said Steve Friess at The New York Times. One typical location, My Mechanics Place in Detroit, supplies the bay, the lift, and some tools for $25 an hour. For a simple task like an oil change or tire realignment, the DIY garage could save you "60 to 80 percent on the repair costs." The concept isn't entirely new — oil companies used to lease garage stalls and lifts in the 1970s for "customers to do their own work." As cars grew more durable, the practice died out. However, some "garage entrepreneurs saw the escalating cost of auto repairs and the reputation of some dishonest mechanics as an opportunity for a renaissance." The only requirement is that you know what you're doing.
More trouble at beleaguered G.E.
General Electric's shares plummeted after a whistleblower accused the company of fraud, said Thomas Gryta and Mark Maremont at The Wall Street Journal. Harry Markopolos is best known as the "accounting expert who raised red flags about Bernie Madoff's Ponzi scheme" years before it became public. Last week, he published a 170-page research report alleging that "the struggling conglomerate has masked the depth of its problems." Markopolos says G.E.'s troubled long term–care insurance business faces $30 billion in claims over the next two decades. The report says G.E. has lied about the severity of the liability and needs to boost its insurance reserves substantially more than the $15 billion it already announced in 2018. The company denies the accusations. Once beloved by the markets, G.E. now trades at a 10-year low.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
Government shutdown looming? Blame the border
Talking Points Democrats and Republicans say funding for immigration enforcement is the budget battle's latest sticking point. That's about all they agree on.
By Rafi Schwartz, The Week US Published
-
'Conservatives have not limited their attack on reproductive rights to the US'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published
-
Xi-Biden meeting: what's in it for both leaders?
Today's Big Question Two superpowers seek to stabilise relations amid global turmoil but core issues of security, trade and Taiwan remain
By Harriet Marsden, The Week UK Published
-
Will North Korea take advantage of Israel-Hamas conflict?
Today's Big Question Pyongyang's ties with Russia are 'growing and dangerous' amid reports it sent weapons to Gaza
By Harriet Marsden, The Week UK Published