The 5 Worst States for Drivers
Folks in California and Washington might want to consider installing extra security devices on their cars. Bankrate says that California ranks as the worst state in the nation for car theft, with Washington not far behind. California has 431 car thefts per 100,000 people, while Washington has 407. The national average is 220.
Theft isn’t the only problem facing car owners. Bankrate also looked at data for other factors including fatal crashes, average commute times, gasoline and repair costs and insurance premiums to create a comprehensive ranking of the best and worst state for drivers.
Louisiana was named the worst state for drivers overall, mainly because of its above-average rate of fatal crashes. The Bayou State has 1.5 fatal crashes per 100 miles driven, while the national average is 1.1. Not surprisingly, it has the highest car insurance costs in the country. The state’s five-year average for a car insurance premium is $1,279, almost $300 more than the national average of $910.
Related: The Amazingly Stupid Things Smartphone Users Do While Driving
Thanks to its low gas and insurance costs, below-average theft and short commute times, Idaho ranks as the best state for drivers overall. Annual gas costs come to $733, more than $200 below the national average. Car insurance costs are typically around $656 and car thefts occur at a rate of 95 per 100,000 people. The average commute time for individuals each way is 19.5 minutes, nearly five minutes below the national average.
Here are the five best and the worst states for drivers:
5 Worst States for Drivers
1. Louisiana
2. California
3. Texas
4. Maryland
5. New Jersey
5 Best States for Drivers
1. Idaho
2. Vermont
3. Wyoming
4. Wisconsin
5. Minnesota
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Chart of the Day: Tax Cuts and the Missing Capex Boom
Despite the Republican tax overhaul, businesses aren’t significantly increasing their capital expenditures. “The federal government will have to borrow an added $1 trillion through 2027 to pay for the corporate tax breaks,” says Bloomberg’s Mark Whitehouse. “So far, it’s hard to see what the country is getting in return.”
Chart of the Day: 2019’s Lobbying Leaders
Roll Call reports that trade, infrastructure and health care issues including prescription drug prices “dominated the lobbying agendas of some of the biggest spenders on K Street early this year.” Here’s Roll Call’s look at the top lobbying spenders so far this year:
Can You Fix Social Security? A New Tool Lets You Try
The Congressional Budget Office released an interactive tool Wednesday that shows how some widely discussed policy changes would affect the long-run financial health of the Social Security system.
“This interactive tool allows the user to explore seven policy options that could be used to improve the Social Security program’s finances and delay the trust funds’ exhaustion,” CBO said. “Four options would reduce benefits, and three options would increase payroll taxes. The tool allows for any combination of those options. It also lets the user change implementation dates and choose whether to show scheduled or payable benefits. … The tool also shows the impact of the options on different groups of people.”
Click here to view the interactive tool on the CBO website.
Why Prescription Drug Prices Keep Rising – and 3 Ways to Bring Them Down
Prescription drug prices have been rising at a blistering rate over the last few decades. Between 1980 and 2016, overall spending on prescription drugs rose from about $12 billion to roughly $330 billion, while its share of total health care spending doubled, from 5% to 10%.
Although lawmakers have shown renewed interest in addressing the problem, with pharmaceutical CEOs testifying before the Senate Finance Committee in February and pharmacy benefit managers (PBMS) scheduled to do so this week, no comprehensive plan to halt the relentless increase in prices has been proposed, let alone agreed upon.
Robin Feldman, a professor at the University of California Hastings College of Law, takes a look at the drug pricing system in a new book, “Drugs, Money and Secret Handshakes: The Unstoppable Growth of Prescription Drug Prices.” In a recent conversation with Bloomberg’s Joe Nocera, Feldman said that one of the key drivers of rising prices is the ongoing effort of pharmaceutical companies to maintain control of the market.
Fearing competition from lower-cost generics, drugmakers began over the last 10 or 15 years to focus on innovations “outside of the lab,” Feldman said. These innovations include paying PBMs to reduce competition from generics; creating complex systems of rebates to PBMs, hospitals and doctors to maintain high prices; and gaming the patent system to extend monopoly pricing power.
Feldman’s research on the dynamics of the drug market led her to formulate three general solutions for the problem of ever-rising prices:
1) Transparency: The current system thrives on secret deals between drug companies and middlemen. Transparency “lets competitors figure out how to compete and it lets regulators see where the bad behaviors occur,” Feldman says.
2) Patent limitations: Drugmakers have become experts at extending patents on existing drugs, often by making minor modifications in formulation, dosage or delivery. Feldman says that 78% of drugs getting new patents are actually old drugs gaining another round of protection, and thus another round of production and pricing exclusivity. A “one-and-done” patent system would eliminate this increasingly common strategy.
3) Simplification: Feldman says that “complexity breeds opportunity,” and warns that the U.S. “drug price system is so complex that the gaming opportunities are endless.” While “ruthless simplification” of regulatory rules and approval systems could help eliminate some of those opportunities, Feldman says that the U.S. doesn’t seem to be moving in this direction.
Read the full interview at Bloomberg News.