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What the Bosses of AZ, Novartis and Schering Didn't Say in Their Healthcare Roundtable

The CEOs of AstraZeneca, Novartis and Schering-Plough shared their views on healthcare reform at a Cleveland Clinic debate the other day but more interesting was what they didn't say. None of them recommended that the U.S. adopt the healthcare plans that they, themselves, enjoy.

Here, according to Dow Jones Newswires, and the WSJ, is what they recommended:

  • AZ CEO David Brennan: the current health-care reimbursement system lacks incentives for disease prevention; some health plans won't pay for gym memberships that could help people stay in shape but they do pay for expensive treatments for someone who develops diabetes as the result of an unhealthy lifestyle. "Somehow we've got to get that flipped around so people take more responsibility."
  • Novartis CEO Daniel Vasella: spending on malpractice insurance and defensive medicine was "way too much." He argued for caps on medical-malpractice awards, something that hasn't been a priority in current reform proposals.
  • Schering-Plough CEO Fred Hassan: called for taxes on sugary soft drinks, and argued for higher payments from people with unhealthy behavior. "I feel if they're adding to the cost of the system, there has to be a level of responsibility,"
Brennan can take advantage of the U.K.'s National Health Service, which covers everyone and is largely free at the point of delivery. It is paid for out of general taxation.

Vasella can take advantage of the Swiss healthcare system, in which insurance, private or public, is compulsory. People can choose their fees and deductibles.

Hassan, according to this SEC filing, enjoys the "typical health and welfare and retirement benefits generally made available to all regular workers of Schering-Plough." But on page 46, Hassan gets something that "typical" employees don't get: "Continued medical and other welfare benefits for three years following termination."

Pharma CEOs not advocating the healthcare that they, themselves, enjoy is something of a trend. The bosses of Amgen, GlaxoSmithKline, Eli Lilly and Pfizer have all done the same thing.

Image: healthcare reform-haters Harry and Louise.

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