• 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:

    Collections: Clothing, How Did They Make It? Part I: High Fiber

    This week we are starting the first of a four (?) part look at pre-modern textile production. As with our series on farming and iron, we are going to follow the sequence of production from the growing of fibers all the way to the finished object, with a f…

    via A Collection of Unmitigated Pedantry March 5, 2021

    Austerity is Inefficient

    Working on an emergency timetable for regional rail has made it clear how an environment of austerity requires tradeoffs that reduce efficiency. I already talked about how the Swiss electronics before concrete slogan is not about not spending money but ab…

    via Pedestrian Observations February 27, 2021

    The Troubling Ethics of Writing (A Speech from Ancient Sumer)

    (Translated from a transcript of an ancient Sumerian speech by Uruk's most well-respected Scriptological Ethicist) Writing is a profoundly dangerous technology: Access to writing was initially, and still remains, uneven. What's worse, the rich are m…

    via BLOG - Cullen O'Keefe February 15, 2021

    more     (via openring)


  • Posts
  • RSS
  • ◂◂RSS
  • Contact