• Posts
  • RSS
  • ◂◂RSS
  • Contact

  • Extremely High Cost Drugs

    July 29th, 2017
    bio, ideas  [html]
    Let's say a company discovers a new drug that's far more effective than the current standard of care. [1] They get it through clinical trials, it still looks amazing, then they start selling it. But they set the price incredibly high.

    My understanding is that insurance companies in the US are not allowed to refuse to cover a drug on the basis of cost, and they're not allowed to have limits on what they'll pay for someone's care. So what happens? Why aren't new drugs much much more expensive than they currently are?

    Update 2017-08-01: From the comments it sounds like it's coinsurance (percentage co-pays) on high cost drugs that keeps this in check.


    [1] If it's only a little bit better the insurance company could argue "sure it looks good in your N=500 tests, but we don't think this effect will hold up" or something. But if it's plainly much better then they wouldn't be successful with this I think?

    Comment via: google plus, facebook

    Recent posts on blogs I like:

    Governance in Rich Liberal American Cities

    Matt Yglesias has a blog post called Make Blue America Great Again, about governance in rich liberal states like New York and California. He talks about various good government issues, and he pays a lot of attention specifically to TransitMatters and our …

    via Pedestrian Observations November 19, 2020

    Collections: Why Military History?

    This week, I want to talk about the discipline of military history: what it is, why it is important and how I see my own place within it. This is going to be a bit of an unusual collections post as it is less about the past itself and more about how we st…

    via A Collection of Unmitigated Pedantry November 13, 2020

    Misalignment and misuse: whose values are manifest?

    Crossposted from world spirit sock puppet. AI related disasters are often categorized as involving misaligned AI, or misuse, or accident. Where: misuse means the bad outcomes were wanted by the people involved, misalignment means the bad outcomes were wan…

    via Meteuphoric November 13, 2020

    more     (via openring)


  • Posts
  • RSS
  • ◂◂RSS
  • Contact