US Patients Battle EpiPen Prices And Regulations By Shopping Online (cnn.com)
"The incredible increase in the cost of EpiPens, auto-injectors that can stop life-threatening emergencies caused by allergic reactions, has hit home on Capitol Hill," reports CNN. Slashdot reader Applehu Akbar reports that the argument "has now turned into civil war in the US Senate":
One senator's daughter relies on Epi-Pen, while another senator's daughter is CEO of Mylan, the single company that is licensed to sell these injectors in the US. On the worldwide market there is no monopoly on these devices... Is it finally time to allow Americans to go online and fill their prescriptions on the world market?
Time reports some patients are ordering cheaper EpiPens from Canada and other countries online, "an act that the FDA says is technically illegal and potentially dangerous." But the FDA also has "a backlog of about 4,000 generic drugs" awaiting FDA approval, reports PRI, noting that in the meantime prices have also increased for drugs treating cancer, hepatitis C, and high cholesterol. In Australia, where the drug costs just $38, one news outlet reports that the U.S. "is the only developed nation on Earth which allows pharmaceutical companies to set their own prices."
Time reports some patients are ordering cheaper EpiPens from Canada and other countries online, "an act that the FDA says is technically illegal and potentially dangerous." But the FDA also has "a backlog of about 4,000 generic drugs" awaiting FDA approval, reports PRI, noting that in the meantime prices have also increased for drugs treating cancer, hepatitis C, and high cholesterol. In Australia, where the drug costs just $38, one news outlet reports that the U.S. "is the only developed nation on Earth which allows pharmaceutical companies to set their own prices."
It should be legal to order the same product from another country. They're both made by the same company. Stupid trade protectionism.
As long as it doesn't interfere with some rich and powerful company!
Free Market, unless you want to buy medicine, then we don't let you. Funny how, in this, like so many other issues, the "conservatives" are against a free market, and the "liberals" are for the free market.
Learn to love Alaska
Ban drug ad's like most developed nations do!
My Telmisartan (technically generic now, but Big Pharma is delaying it) is 6x cheaper overseas. Fuck the corporate kleptocracy and their politcal enablers with a rusty rake.
They even had a state website that pointed directly to Canadian pharmacies for several years: http://www.amednews.com/articl... . I used their list to choose my Canadian pharmacy and still use them when it makes financial sense.
Just wait for the jail / prison bill for the drugs + the cost of locking people up. as some people may trun to local jail as there last resort. also their doctors do more then the ER.
What prevents an American from buying EpiPens (or any pharmaceutical) on the international market?
Ken
Someone look up the D's and R's please. Since they were omitted I'm betting the father of the CEO is a (D).
Maw! Fire up the karma burner!
This is similar to the price hike for asthma inhalers.
The excuse was to eliminate CFCs and save the ozone layer.
There is not even an attempt at government control.
And still insufficient demand for universal health care. And don't blame the politicians. With the upcoming 95% reelection rate (and 100% republican/democrat monolith), there is no incentive for them to change anything. The only issue monopolizing the media is *he who shall not be named*
“He’s not deformed, he’s just drunk!”
Epi-pen dosage is 0.3 mg of epinephrine. One dose from a Primatene mist inhaler releases 0.22 mg of epinephrine, exactly the same active ingredient as an Epi-pen. There are over 60 doses per Primatene mist inhaler. at a cost of about 50 cents per dose. Several years ago Primatene Mist was removed from the market. Our health care system is now fully controlled by corporations that don't give a rat's ass if we live or die as long as their profits continue to skyrocket, at any cost. Health insurance companies could fight back. But they don't appear to care, as they just raise their rates to cover the excessive and escalating cost of life saving prescription drugs. Having asthma, and having worked with suppliers of delivery mechanisms during my career, I estimate the cost of goods sold per Epi-pen is about $2 to $3 each. Any figures beyond that are profit. Any higher CGS presented by Mylan, should they choose to do so, are likely accounting techniques where they move ongoing R&D costs onto old and fully paid for products. The retail price of Mylan's Epi-pen is legalized theft such that Al Capone would be proud.
Epipen has no domestic competitors because the FDA (government) says so. It can't be bought from abroad because the government (FDA) says so. The solution isn't to mandate pricing, it is to streamline the process of delivering a well understood drug (adrenaline) at a well known dose, in an exactly known situation. It would be trivial to bring generic competitors to market if this were a reasonably governed area, and there would be no price gouging allowed because they couldn't sell it at even what the price was before the jacked it up. (Adrenaline aka epinephrine is trivially cheap, and the injector is quite cheap to make as well.)
But why in the FUCK are companies being granted effective monopolies on generic drugs?!?!
Nice to know our 'representatives' don't feel the need to hide it anymore. They've been in bed with the drug companies for a long time. But seriously, this takes it to the level of Muppets-style puppetry. No one believe that Kermit is a real frog; we all know that he's got an arm buried up his backside. Do you think Congress gets a bulk discount on shoulder length calving gloves and jugs of lube?
Arguably "the same drug" will be the same everywhere, but if you're ordering online drugs from somewhere outside the FDA inspection regime, you don't know what your chances are that it's in fact actually "the same drug". Really, you don't know what you're getting.
That's still a possibility here, of course, but when a US producer commits fraud you'd better believe you'll have an army of lawyers beating down your door to help sue them into oblivion for it. Random Joe Bob's Discount Drug Shack operating in Singapore? Good luck.
Secondly, the FDA approval process itself. For better or for worse, having a complex medical trial and many layers of approval is probably better that not having it, in terms of protecting US consumers from unsafe foods and drugs. There's a fast-track process for promising drugs and devices to prevent dangerous conditions, and there registered experimental treatments, but all other things being equal, I'd prefer to know that some basic level of testing was done.
Drug IP process. People in other countries like to point out that they can purchase drugs for $20 that are charged higher processes here. You can thank us (the American Consumer) for that. Not everyone gets to be a marginal consumer.. and part of the reason we're paying full price for drugs is so that the market incentive allows those drugs to be developed in the first place. Without market incentive, you're only going to proceed in research as fast as centrally-planned authorities dictate you will. Or you're a charity, funded by donations.
None of those things directly deal with device IP, but to be honest cases like this (where someone is being an abject douchebag) are rare, and tend to get discovered, highlighted, and corrected through social pressure. (EMT's have been talking about the cost of EpiPens for years, and there were already initiatives under way to allow EMT's to inject Epi directly: http://thesouthern.com/news/local/govt-and-politics/new-state-law-will-allow-emts-to-inject-epinephrine/article_42dbddd9-a035-509b-b99a-7f720c7411b0.html
If there's a justifiable reason for a price hike, it'll become public as well. Often there is. E.g., a critical component has restricted availability.
Hire a Linux system administrator, systems engineer,
So its illegal to buy it from overseas, but its not illegal to take the profits overseas ????
A 1 ml ampule of epinephrine costs about $5. An insulin syringe about 25 cents. That is enough for three normal epi-pen doses - more than enough for any emergency. Sensitive hikers carry this. Folks working around bees and wasps too. If your doctor won't prescribe it, find a doctor who will. Of course you will have to learn to break the top off the ampule and fill the syringe up, getting rid of little bubbles. The rest is the the same. The only reason epi-pens are an issue is because many, perhaps most people are accustomed to Big Pharma and insurance companies leading them to believe that they will take care of them, but only if they stop thinking for themselves.
>"the U.S. "is the only developed nation on Earth which allows pharmaceutical companies to set their own prices."
There is nothing inherently wrong with a free market..... as long as the market really is free and isn't being controlled by unregulated monopolies. That is what we are seeing happen with things like the Epi-Pen. And in cases where patents are creating artificial monopolies, we have to examine if there should be regulation (as we rightfully regulate all other monopolies).
As for the backlog at the FDA for generics- that is just inexcusable.
Oh, and yes, I am one of the people that must have an Epi-Pen or risk losing my life if I accidentally eat a nut (which happened once and nearly did so). So yes, I have a horse in this race...
The cost to the NHS is ~£26 each. You can buy them from registered UK online pharmacies for ~£45 each. Given that the £ has devalued rather more than somewhat against the US $, this may give you some sense of scale as to just much of a ripoff the price of $300 each is. It also makes rather a nonsense of the 8% profit margin mentioned in the article although - to be fair - it isn't made clear as to whether this is the overall margin for the company or the pens.
How about taking care of Mylan first instead of letting them off the hook?
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
No one said the company isn't allowed to turn a profit - but as a patient, do you want the sole supplier of medication that keeps you alive to suddenly realize they are the ONLY REASON YOU ARE ALIVE and bumping your daily expense up to a million dollars?
-=This sig has nothing to do with my comment. Move along now=-
Oh, I agree. If you ever find anyone at your mercy, you should extract as much money and advantage from them as the market will bear. And believe me, the market will bear a lot when it comes to matters of life and death. Some may not be able to pay the cost but let them fall by the wayside - do not lower your optimized price.
That's all fine until you're put on a waiting list for an operation or aren't given the same standard of care that an American would expect.
A Pirate and a Puritan look the same on a balance sheet.
A big splash happened recently when a cancer patient was jailed for being a "deadbeat". He did NOT get his meds while in jail.
A Pirate and a Puritan look the same on a balance sheet.
Um. Dude. You might want to look around, this site is largely due to the existence of free software. FREE. People do it and give it away for FREE.
You just can't fathom value being non-monetary which makes your economic-fu weak. Homo econicus ain't no fool, Homo Economicus has gradients of preferences, in relation to and driven by a variety externalities, which regardless of your mental capacity to comprehend them exist. Right now. In you, your inner homo economicus, is erupting with complex value calculations that you are probably to ignorant to clearly understand.
You should stop being so hung up on money, and let your inner homo economicus run free. Enjoy all your preferences, not just the ones society shows you will satisfy you.
A big secret I learned a long time ago, that sort of makes this all work, is that by helping each other (think free shit) we get along better in the universe. It actually makes us happy and fulfilled. What?! That is our most selfish center is, is best satisfied by caring about helping other humans?
That sounds fucked up. Real fucked up... But shit that does make some fucking sense. It's probably our evolutionary edge, because there ain't no fuckin way we out predator'd everything else on this planet lone wolfing it for a few million years... That and thumbs.
Thumbs are no fucking joke.
There are other epinephrine auto-injectors on the market in the US, cleared by the FDA. A simple Google search will show Adrenaclick at the top of page 1 (FDA cleared, available, and cheaper than EpiPen). It's not hard to find.
The problem here is that people want an "EpiPen", which is a BRAND, not a drug. These guys do not have a monopoly on epinephrine auto-injectors (the thing people need), they have a trademark on "EpiPen" (their product name), which is totally reasonable.
This is not an FDA issue, a generic drug access issue, or an issue with the pharma industry's reduction of effective R&D everywhere but the US. This is about people being susceptible to marketing and branding.
"is the only developed nation on Earth which allows pharmaceutical companies to set their own prices."
this statement is simply not true. Even in Australia they set their own prices and drugs not listed as being subsidised by government can truly have insane prices. The only thing we have is the government rejects drugs for the program subsidies if the pharma companies aren't reasonable in price. Being a government subsidised drug is far more beneficial than a limited market at high prices in most circumstances.
It seems Big Pharm companies are taking turns on who is going to be in the spotlight this week for their unregulated ability to gouge the shit out of folks who need the medications just to survive.
What needs to happen is the whole fucking industry needs to be regulated with price caps on everything they sell. If they give any shit about it, simply open up the overseas markets and tell Big Pharm to go screw themselves.
I know someone who was just informed their cancer treatment is going to cost $240,000. This is at least 3x times their yearly salary. Who the f*ck can afford this other than the 1% types ?
I think I would just take death instead. At least my beneficiaries would have a decent nest egg instead of giving it to those who profit by screwing everyone over.
I understand they need to make a profit to remain operational, but the profits they're making is absurd and it comes at quite a cost for everyone else.
Regulate it and stop the monopoly in its tracks. If they can sell the product overseas for a fraction of the cost, then they can do it here as well. If not, they can GTFO.
the right wing in our nation spent billions wining local elections so they could take the state senates and then gerrymandered their way into the national house & senate. Progressives won the popular vote in the last 3 elections but still lost because of this. If nothing else that's why I want Hilary. She's likely to stack the Supreme court with left leaning candidates that'll shut gerrymandering down. Trump/Pence will do the opposite. Imagine a court with 3 Clarence Thomases on it...
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
The patents on this expired long ago.
This is the big ugly hand of the regulatory super-state at work. No drugs can be sold in the USA without approval of the FDA (Food and Drug Administration) and they have a decades-long well-earned reputation for dragging their feet on approving drugs and manufacturers.
Sometimes their caution is GREAT, as when they never approved Thalidomide and American children were spared from severe birth defects that occurred in the US and Europe. They have also spared uncounted numbers of Americans from getting counterfeit drugs and being severely harmed or killed while thinking they are obeying their doctors instructions.
Unfortunately, the flip-side of that caution is that it takes mountains of money and years to get each drug approved at each manufacturer, so it a drug is not going to make enough money to justify those regulatory costs a company is not going to bother. This means there are currently only 3 vendors approved to produce the EpiPen in the US and 2 of them are offline right now (one halted by the FDA). The only company currently producing is doing what monopolies love to do: charging what the market will bear. Their executives convince themselves that it's OK to do it because insurance companies are the ones being bilked. Unfortunately for their PR deprtment, in the real world, and particularly now with Obamacare's high-deductibles, average people are the ones eating the price hike.
The solution: Change the FDA. Make it cheap and fast for a drug manufacturer to get approved to make any drug if they can prove that they are using industry-standard (or better) processes for quality control and if they are producing a chemically-identical product. Once the basic drug is approved, and the patents are expired, no other company should have to prove the efficacy andsafety of the same drug over and over again, they should only have to prove they are making the same drug and making it just as safely. Don't end patents (the stupid and simplistic faux-solution). That would destroy the sources of cash for most drug research by eliminating potential returns from long-shot R&D investments.
Without personal gain, shit just doesn't get done.
People managed to make money (even obscene amounts) before patents and copyrights existed. They will be able to make money (even obscene amounts) after patents and copyright are given the boot.
Or put another way, if nobody is making something, someone will come along and make it. If there are too many people making copies of something, then some of those people will go out of business. The idea that without patent and copyright protection, nobody will build anything, is without merit and stands in contrast to 10,000 years of commerce.
Last note: copyrights and patents are artificial *monopolies*. They exist in direct contradiction to the concept of a free market. One cannot be in favor of unregulated free markets and be in favor of copyrights and patents: They stand at odds to one another. If you believe they can co-exist then you either do not understand what patents and copyrights are, or you do not understand what free markets are...
I wish I had a good sig, but all the good ones are copyrighted
Without personal gain, shit just doesn't get done. You don't work for free. Why do you expect anyone else to.
As a real patient, I would rather the entire the entire industry not be destroyed either by crass idiots or morons with "good intentions".
The issue isn't that simple and there's a lot at stake that you're blissfully unaware of.
Sheesh! The Epi-pens cost less than $50 in materials to make and yet the maker wants to charge over $300 apiece for them. The only way they can get away with it is by having an exclusive license to sell them in the USA. The only reason they can get away with it is they have no competition.
Back when air-travel was a regulated industry, the profit margins were absurdly high - at least compared to today.
Deregulation has not led to an increase in crashes, and if you like to bitch about economy class - you can still purchase business class service for about what economy class used to cost.
Point is, while I usually consider libertarians to be deserving of the label libertard, pharma is one industry that would benefit from some deregulation - open the trade barriers, license the generics more quickly, and maybe make it a little less costly to get new drugs approved. However, as with any status quo - there are plenty of people who would be disadvantaged by a change, so those people fight to keep the status quo. As a democracy, it's time we started standing up for what benefits the voting public, rather than the entrenched special interests.
Without personal gain, shit just doesn't get done. You don't work for free. Why do you expect anyone else to.
As a real patient, I would rather the entire the entire industry not be destroyed either by crass idiots or morons with "good intentions".
The issue isn't that simple and there's a lot at stake that you're blissfully unaware of.
According to a US TV report the drug contents of the pen are worth just a couple of bucks and the pen itself is out of patent protection. There is a competitor but it had a safety recall some time ago and that put some people off buying them. Also the name "Epipen" has become like "Bandaid" in that people think that's the only official option.
Make no mistake, this is just a blatant rip-off to help pay for the CEO's US$19 million annual paycheck.
What is not fine is to give a very long monopoly to only one company to make them... without competition the price will not naturally fall.
You have to allow some time let companies have some profits on research, but how long has the Epi-Pen been around? Long enough there should be more than one company making hem now.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
It's not really that simple, and in a restricted market well designed patents can encourage trade secrets to be replaced by a limited monopoly combined with publication in sufficient detail to allow others to replicate the invention.
Unfortunately, that doesn't describe the current situation, where things would be improved if all patents were canceled and declared void and invalid from the beginning.
Also read Spider Robinson's "Melancholy Elephants" for an insightful take on copyright law by an author. (Short of it: Copyrights last much too long.)
Both patents and copyrights have a valid place in a good legal system. But the current laws for both are worse than not having any laws about them.
I think we've pushed this "anyone can grow up to be president" thing too far.
As the medical monopoly prices itself out of the market, capitalism busts through with the same irresistible force it does whenever this happens.
They call it the black market, and we call it the real market.
"Current IP law has little to do with logic"
This is not the same problem as the high price of newly branded medications. This is a product that has been on the market for more than a generation, price steadily sliding down the learning curve as competing products came onto the market. Then, suddenly, there are no more competing products because Mylan, by influencing the FDA, is using governmental power to force out its competitors.
It has been pointed out that Mylan's CEO is a donor to the Clinton Foundation, but ultimately we can't blame Mylan for taking advantage of the legal power the government has handed it any more than we can blame a hungry whitetip shark from eating people. The real blame should fall on the FDA and its locking out of the competition, and only when we strip it of that power will there be any hope of bringing prices back to earth.
"Point is, while I usually consider libertarians to be deserving of the label libertard..."
Hi, I'm a libertard. The vital business of the FDA is getting compounds and products tested. Let that be its only business. Everything submitted to the agency would get a label, indicating whether or not the product was approved. The label would contain a QR code pointing to online detail about what the testing revealed about the product. My version of the FDA would have no other powers. Doctors, patients and insurance companies would be able to make up their own minds on whether to take FDA recommendations as a gold standard or whether to accept, say, the approval of European or Asian testing organizations as being equally authoritative.
In the Epi-Pen case, Sanofi and Teva submitted their own epinephrine autoinjectors. Sanofi's product has a problem with dosage control, and was recalled. The FDA rejected Teva's product for reasons that have never been made clear. Under my system, GDA would have to explain exactly what it didn't like about the Teva product, while at the same time allowing users to make up their own minds about the importance of the FDA's objections when weighed against how much they need the product and the price of alternatives..
If daughter is CEO of Mylan, the senator is in clear conflict of interest by voting on or discussing the issue.
Or does ethics matter at all?
Same thing applies to NHTSA. If I want to drive a car built to EU standards, I should be able to ship one over*. And the crappy US manufacturing and dealership mafia can go straight to hell with their regulatory buddies who try to tell me who I should be doing business with. It's no different than what the mob used to do in NYC with garbage collection. Those responsible at the regulatory agencies need to be shuttled off to John Gotti's old cell ASAP.
*But muh safety! I can legally import USED European vehicles into this country. And non-EPA compliant as well, so long as they are old enough. So evidently, bringing in a smoke-belching death trap isn't the issue. It's me having money for a new vehicle but not spending it at the local dealership.
</rant>
Have gnu, will travel.
This CEO lady is going to be the proverbial straw... "Daddy, 'pass a law against those evil Canadian pharmacies!"
And judging by what's happened with Hillary, he will, and not a damn thing will be done about it on our behalf.
I had a sucky sig.
One third of Americans have effectively NO medical coverage, so I expect they have low expectations of medical care.
So you would prefer a form of indentured servitude due to overpriced medicine, so that the CEOs can buy their super yachts?
Jumpstart the tartan drive.
Well, libertard (please take that in fun, as it was intended) your real problem in this world isn't actually the FDA, it's the insurance industry. The FDA may be able to shut down businesses which don't comply, but, by and large, they let an awful lot of stuff get through. It's the insurers who are deciding what actually gets used in our medical system - drugs, devices and procedures they are willing to pay for are widely used, those they do not are relegated to a tiny fraction of the market. FDA doesn't actually "approve" anything, they give "permission to market." It's insurers that "approve reimbursement," and insurers who have built up a system so corrupt that when it is studied in history, people will not believe the ratios between private pay price and insured reimbursement. It simply won't make sense that a society that supposedly had a free and open competitive market, with laws against monopolistic behavior, could ever allow billing $15 for a 500mg Tylenol pill, or $15,000 for a device with 30 year old technology inside that costs $500 to make.
The only other time I ever encountered "prices" that were so crazy was in former East Germany, just after the wall fell 1990: Bread: $0.05 per pound, nice 3 bedroom flat in town: $12 per month, bicycle (luxury item) $15,000, color TV $45,000. It turns money into a sick joke. Just like in the USA today, when you get really sick, the money involved is beyond crazy, all you can do is laugh and shake your head, oh, and pay the man if you want a chance to live.
No, the FDA's power to keep products off the market is the problem. The health insurance industry only has the power it enjoys now because it's the patient's only bulk bargaining agent in the current monopoly environment. Except for major medical like heart problems and cancer, the industry isn't even functioning as true insurance - it's just a prepayment system with bargaining power.
The real price of any medical procedure, device or compound is the contract price the insurance company pays for it. Unless you're on Medicare and get a regular EOB statement of payments, patients never even know what this contract price is. As an example, my wife's kidney dialysis sessions are billed out at $3,925 each, for a total of about $600,000 per year. The insurance company's "real price" is $290 per session.
If we had a competitive market in medicine the importance of insurance companies would diminish. Health insurance would go back to being the "major medical" it once was, indemnifying us against hospital stays and catastrophic diseases. The governments and charities which pay for medical services now would save correspondingly, which alone is why competition will be forced on the industry as prices become intolerable.
Without personal gain, shit just doesn't get done. You don't work for free. Why do you expect anyone else to.
You mean like penicillin? Or polio vaccine? Or insulin? Which were invented by people who refused to take patents and didn't try to make money out of it? The history of medicine is full of people who came up with important breakthroughs and weren't particularly interested in money.
Once you get a certain level of income, enough to raise a family in comfort with all the requirements of a good life, you don't really need more money and a lot of people will work for free just because they want to do something useful for the world.
A lot of doctors who are specialists make $300,000 a year. That should be enough for anybody.
Some of the most important work in medicine gets done free -- peer-reviewing journal articles and grant applications.
Heather Bresch, the CEO of Mylan who raised the price of EpiPens to $600, is making $16 million a year. Couldn't she get by on $1 million? Even Adam Smith would say that's excessive.
And yes, I've done some of my best work for free.
It's not just an exclusive license. They passed laws requiring schools to buy them.
Heather Bresch, Mylan's CEO, whose father is a congressman, managed to get Congress to pass a law effectively requiring every school in the country to stock an automatic injector, of which EpiPen is the only one readily available.
As an example, my wife's kidney dialysis sessions are billed out at $3,925 each, for a total of about $600,000 per year. The insurance company's "real price" is $290 per session.
Well, the original intention of Congress was to have free market competition in kidney dialysis, to bring the price down, but that didn't work. There were a lot of small providers but a couple of big companies took over the industry and turned it into a monopoly. You can't negotiate prices with a monopoly.
It seems that in the modern economy, the free market doesn't last long as many industries turn into monopolies. Amazon is a book-selling monopoly. Google is an internet advertising monopoly.
If we must have a monopoly, we might as well have the government running it.
...[Y]our real problem in this world isn't actually the FDA, it's the insurance industry. The FDA may be able to shut down businesses which don't comply, but, by and large, they let an awful lot of stuff get through. It's the insurers who are deciding what actually gets used in our medical system...
Tell me about it. My mother has cancer. Her physician-recommended treatment isn't covered by insurance because they consider it "experimental", despite the fact that it seems to have worked quite well for Jimmy Carter.
Il n'y a pas de Planet B.
Jedidiah, you're normally pretty astute, but on this issue I must inform you that with all due respect you have not got a single fucking clue.
*Neither* of those things happened to me when I was hospitalised in China a couple of years ago.
What I did get was prompt, professional, and effective treatment by very qualified doctors and staff using the latest equipment in a very modern and well-maintained facility.
I also received a bill for 1600RMB, because I'm not a Chinese citizen and I informed them that I was able to pay.
Can you remind me which US hospital it is that only charges $250 for ER admission + overnight stay? I can't seem to recall...
Il n'y a pas de Planet B.
Some may not be able to pay the cost but let them fall by the wayside - do not lower your optimized price.
That's what coupons are for. If your customers start dying, you start up a need-based rebate program, where your accountants can review each customer's financial situation and determine the actual maximum amount they can pay. You do this as discounts from high price, because people will be grateful for the special consideration and charity.
The health insurance industry only has the power it enjoys now because it's the patient's only bulk bargaining agent in the current monopoly environment.
Except that the insurance industry has no motivation to control costs. They run, essentially, as a cost-plus provider, meaning that their profit margin is some percentage of whatever the cost of care. If the cost of drugs goes up, the insurance company doesn't "eat" that cost, they raise premiums.
Some of the most important work in medicine gets done free -- peer-reviewing journal articles and grant applications.
To be honest, peer review is not done for free. The people who do it don't have their salaries docked for time spent on these third-party activities, because they're considered part of the job. (NIH reviewers even get a small stipend for the days they spend in Bethesda) When professors go up for tenure and promotion, they list the journals and agencies they review for - they're badges of academic legitimacy. While it is true that time spent reviewing grants is time not spent preparing lectures, grading papers, or doing your own experiments, peer review is definitely something that a university considers its faculty paid to do. Just not paid by the journals that benefit.
I must make a small correction in their defence: Unless the price has changed in the last couple of days, it's $300. They are usually sold in boxes of two, for a total price of $600.
During this incredibly contentious Presidential elections with accusations of rampant corruption and accusations of immoral actions in return for money, it is appropriate to point out that this company is run by a Democrat, who is the daughter of a Democrat Senator, and that the company gave money to Hillary's "Foundation". The very same Hillary who climbed on her high horse about the cost increase but has now fallen silent, even though the cost increase is still $300 from $100.
So the lesson we learn here is that Democrats are against high Drug Prices...unless they are profiting.
Harry Lime: Nobody thinks in terms of human beings. Governments don't. Why should we? They talk about the people and the proletariat, I talk about the suckers and the mugs - it's the same thing. They have their five-year plans, so have I.
Martins: You used to believe in God.
Harry Lime: Oh, I still do believe in God, old man. I believe in God and Mercy and all that. But the dead are happier dead. They don't miss much here, poor devils.
Martins: Have you ever seen any of your victims?
Harry Lime: You know, I never feel comfortable on these sort of things. Victims? Don't be melodramatic. Look down there. Tell me. Would you really feel any pity if one of those dots stopped moving forever? If I offered you twenty thousand pounds for every dot that stopped, would you really, old man, tell me to keep my money, or would you calculate how many dots you could afford to spare? Free of income tax, old man. Free of income tax - the only way you can save money nowadays.
Just carry the small injection package, small tin box with a needle, syringe, bottle of Eppie and it's just a couple bucks. The epipen is a CONVENIENCE item. I don't know why everyone is making this out like it's a frigging big deal! It's a CONVENINCE ITEM. No one is pricing this medicine OUT of your price range. It's a CONVENIENCE item. Just use the regular stuff for a couple bucks. If most people did that, they would either drop the price, or go out of business.
of the party affiliation.....
5 out of 6 people enjoy Russian Roulette & 6 out of 7 Dwarfs are not Happy
It's not just Medicare, we have Blue Cross (of Florida, California, Texas and Minnesota - over the years), we get EOBs, the ratios are similar - wildly varying but generally around 10:1. Tourist bartering in souvenir markets usually starts at 2:1, but these jokers have really upped their game. We've also had periods of private pay, and when you're private pay (not shelling out $12K+ per year per person to the insurance industry), then those 10x prices - sure, they're willingly negotiated down for private payers - to 9x. It's worse than mob protection racketeering - and they're using a combination of threats on your health and welfare, and anti-competitive collusion in their business practices to get paid.
If we must have a monopoly, we might as well have the people being served, served according to their best interests - not the interests of the monopoly owners. Call it private, call it free market, call it regulation, call it government run, I don't care. What it needs is transparency, oversight, and an early Ben and Jerry's style compensation cap in the system. When ANYONE in the organization starts making more than 5x the national MEDIAN income, it needs a restructuring to increase wages at the lower tiers, and/or lower prices to the consumers.
If that's Communism, sign me up.
Tell me about it:
https://thesocietypages.org/so...
Provocative line: “The US is the only developed nation on Earth which allows pharmaceutical companies to set their own prices.” Of those 18 provocative words, the most egregious is “allows.” http://www.abc.net.au/news/201... That presumes government owns all property, real and intellectual, in which it magnanimously “allows” us a share, but only as it, government, please. That further presumes that government itself is not the cause of the problem in the first place. Both of those presumptions are wrong, to our great harm. To make this simple, I lay the matter out in clear terms below. That way we can begin discussions wherever it is that you first disagree. Free markets work best to allocate scarce resources. For free markets to work, certain premises are required: many small, independent agents; free flow of information; no distortions such as tariffs, barriers, monopolies The proper role of government is to ensure those premises. Instead, government chooses to meddle directly, and inevitably makes things worse. This is known as iatrogenic disease. In particular, private monopolies are not an issue today. All private monopolies fail: someone always cheats, or defects; substitutes arise; technology advances; fashions change. And if a monopoly should arise, we have a vast apparatus in the US, between the Department of Justice and Federal Trade Commission. (Not that those folks have a good track record, viz. AT&T, IBM, Microsoft, Apple, Amazon Indeed when he was six, my son asked a challenging question, “how can it be a monopoly if it’s something you don’t need?” I wonder.) Today, private monopolies cannot arise. With modern technology, international trade and global markets, they are simply infeasible. No, the only durable monopolies are those imposed by government, because government first holds the monopoly on violence. Now some government monopolies are good, and temporary. Copyrights, trademarks, and patents are in the US Constitution. Others, not so much. That latter includes all the frauds amongst cronies and politicos. That category is the worst violation of free market premises ever, and the one most perpetrated. Cronyism has done orders of magnitude more damage to the US economy than any other violation, including insider trading. As to patents, a primer on the economics. Invention, like any other good or service, must be rewarded in order for it to be produced. Unlike goods and services, intellectual property is peculiarly subject to theft. So government gives inventors standing (term limited) to protect their property with civil remedies. That patent is like a lottery ticket. The inventor tried 10 things. Lost his investment of time, effort, and cash in nine of them. The tenth thing seems to work. Now he must make enough on that tenth thing not only to reward that effort, but to recompense him for the other nine as well. Say the 10 ventures cost $100,000 each. That means the tenth winner must return AT LEAST $1 million. Quite a bit more, in fact, because government comes around to seize its taxes first, and after that, the inventor must do more than break even. That’s the social contract. Before the fact, the politico promises the productive person if he takes risk and makes something that works, he can cash in that lottery ticket.” But after the fact, the politico hypocritically turns all populist and say “I don’t feel that $1,000,000 is merited. I feel $500,000 is more than enough” Who the (trigger warning) is that politico to decide market value? How dare that politico feel it’s up to him to “allow” one price rather than another? Is the patent valid? Then do not violate the terms of the deal. Is there no other competition? Then tell the (trigger warning) FDA to do its job. Is the IP such that people really do need it, as my son asked?
The US pharmaceutical industry tried some of the short-cuts you recommended and ended up with several disasters, such as the New England Compounding Center disease outbreak, which caused 64 deaths.
The Chinese pharmaceutical industry also tried it with the same results.
Pharmaceutical quality control and manufacture is a lot more complicated than making artisinal beer.
Because this is exactly how you get socliazed single payer medical care.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
I joined the 'libertard' party around 40 years ago, when I was 20. Thank you for highlighting the fact that our belief in legalizing drugs extends across the entire spectrum of drugs, both 'recreational' and therapeutic.
And I completely agree - the FDA would be far more useful if there conclusions were along the line of a UL approval, not regulatory.
of the party affiliation.....
Don't be a Republican memeist. Every article I have read so far says specifically that she is the daughter of the Democrat Senator from West Virginia.
Tell me is that supposed to mean that she is a Democrat? And everyone from West Virgian is a Democrat, And BENGHAZI! And just to burst another bubble, I'll be that he is a big fan of Coal mining.
Aww hell, I might as well expose that you are lying From the link to the article:
One Democratic senator whose daughter has allergies has called for action and another Democratic senator's daughter is CEO of the company responsible for the price hike.
O hell, lookie here Right here in River city from the Slashdot summary!
One Democratic senator whose daughter has allergies has called for action and another Democratic senator's daughter is CEO of the company responsible for the price hike. And just to make certain you see it - I know some of you folks need a lot of repetition for the hard stuff to sink in.....One Democratic senator whose daughter has allergies has called for action and another Democratic senator's daughter is CEO of the company responsible for the price hike.
Any questions?
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
You get your script. You go to the pharmacy. They fill it. They tell you your part is $200. Insurance pays "$400". Then Monthly, Quarterly, Yearly (whatever) the insurance company gathers up all scripts it has paid for and goes to the drug company. They tell the drug company we paid $400 on this script. We want a rebate. Drug company gives a rebate to the insurance company. Your don't see any of it. Insurance company doesn't care how much the drug costs because they know they will get a rebate on the drug. How much is the rebate? You don't know because nobody talks about it. Why give a rebate at all? Why not just lower the cost? Well that would hurt the insurance company. They make money on drug rebates. Drug manufacturers get to make money on high priced drugs. If you buy this out of pocket you won't ever get a drug rebate. You can't negotiate with them. It's nothing but a big accounting scam. You're not supposed to be able to figure this out.
Why did your bug fix take away a feature?
If you have no idea what the negotiated price of the item you're buying is, you are not part of the market for it. Someone else is negotiating for you, in this case your insurance company.
Oh, I only look at the data. The rules on pricing are the lowest price among a few choices (awp, and some other stuff). The point is when this story came out I ran some analysis back to 2007 and looked at: number of scripts, number of people, total paid. This was month by month. No one asked me to do this. I figured since it was political that eventual the state legislature was going to throw a question our way (which they did). The CFO got my report and said "thanks! I sent it over to the pharmacy department to see what rebates we got on this so I would know what our actual costs were." Get my point? We get rebates. If you have insurance then the insurance company gets the rebates since when you signed up for coverage there's a clause that says they are entitled to all rebates. You probably didn't read that. There's also a clause about subrogation. Look it up. If you don't have insurance? Well you get to pay full price, no rebate, no coupon, nothing unless the drug company is shamed into handing it out. My point is: If they are going to give rebates or coupons then why not just lower the price? It's a simple formula, everyone gets the same fair treatment. What's the incentive to keep the price high? What's your guess?
Why did your bug fix take away a feature?
It's also possible that part of the reason our drug prices are so out of whack is because everyone else is regulating prices, causing the industry to seek higher profits in the US. Kind of a douchebag maneuver, but is it something that can be fixed without backfiring? It seems like everything we've tried for a century has only made the cost issue worse.
The question that has to be addressed is what created the monopoly that fosters the "price gouging" (no such thing by the way)?
Always, always, always there is government involvement that creates the situation where consumers have no choice. Corporations can't really be held to blame, they are simply scorpions doing what scorpions are going to do (q.v. parable about scorpion and frog). If the government said that ACA plans must cover a monthly pint of Ben & Jerry's, I have zero doubt that the cost of a pint of Ben&Jerry's would rise significantly no matter how crunchy the CEO might be.
Situation is even worse when government creates a monopoly. Why is there no generic form of EpiPen costing $25 per? I had my first epi-pen 30 years ago. Surely their patents have expired? Search and you will certainly find some government regulations propping up the monopoly. See https://mises.org/blog/lack-ep...
(from the Mises link above)
"As it turns out, Mylan has a great friend who keeps would-be competitors out of the market...That friend is the FDA.
"Just this year, Teva Pharmaceutical’s attempt at bringing a generic epinephrine injector to market in the US was blocked by the FDA. Adrenaclick and Twinject were unable to get insurance companies on board and so discontinued their injectors in 2012.
"Adrenaclick has since come back...and the FDA has made it illegal for pharmacies to substitute Adrenaclick as a generic alternative to EpiPen. Another company tried to sidestep the whole auto-injector patent barrier by offering prefilled syringes, but the FDA has stalled them, too.
"Mylan has been repeatedly protected from competition, and it has repeatedly (and predictably) increased the price of EpiPens in response.
"One thing is for sure: capitalism is not to blame. Government regulations have choked this market and many others. What we need is a big dose of freedom.
It has been pointed out that the CEO is a Democrat, the daughter of a Democrat Senator from WV so all of Hillary's bluster on the issue rings hollow.
The solution is not *more* government, as it was more government that caused the problem in the first place.
If they dismantled the FDA the government couldn't stop more affordable options from popping up -which is what happened with the epipen situation.
... except they wouldn't be funded out of your back pocket on April 15th like right now.
Private F&D monitoring and rating agencies would pop up like expedian and the other private credit reporting agencies
Also if you were dying and needed an experimental drug you could just enlist yourself in a trial.
They could have changed this. Instead we got the ACA, which pretty much doubled down on the whole deal.
the core problem created by our "friends" in places like the UK and Canada who do it. Those foreign governments doing it for their socialist medical services are what forced the American consume to bear all the R&D costs and drove-up OUR drug prices; they threatened to break the patents and let the American companies get ripped-off if the American companies did not sell at prices too low to cover all the costs. The result was that the companies lowered the prices over there to a level that allowed a profit on the manufacturing costs but no margin to cover the R&D costs which went entirely onto the US customers and their insurance companies.
I take it from your comment that your expertise is not in pharmaceuticals.
Did you ever hear of insulin (Canada), statins (Japan), penicillin (England), cancer chemotherapy (Italy) or monoclonal antibodies (Argentina/Switzerland)?
I am leaving the Wikipedia search as an exercise for the reader.
If some FDA exec is denying a trip for an inspector becase an AMTRAK ticket cannot be afforded, FIRE the exec and buy some tickets with the savings. Obama and the Democrats have been running the FDA for over 7 years. Priorities????
That happened during the Reagan Administration.
It's amazing (and hopeful) how human beings evolved to be cooperative and work together for the benefit of the group.
There's lots of research on that, in anthropology, biology, behavioral economics, etc.
I read the Wall Street Journal editorial page for 30 years. Milton Friedman was wrong. Ayn Rand was really wrong.
People aren't motivated by money, once they're financially comfortable. In published studies, they will sacrifice real money in order to satisfy their sense of justice. Look up behavioral economics.
They already do this; it's called the Abbreviated New Drug Application. This process was created as a result of an act of Congress, so if you have a problem with it, talk to Congress.
lolWUT??? Every corporation in the world that negotiates prices is an efficient enterprise, but when a government agency does it, it's "meddling in the free market"? What the fuck kind of idiocy is this? Do you honestly expect people to be stupid enough to believe that if foreign governments were as stupid as we are in drug pricing policy, that the pharma companies would lower our prices? Do you honestly expect people to be stupid enough to believe that the prices charged have ANY relation to R&D costs? Have you seen the Pfizer, Novartis or Roche P&Ls?
This comment is my opinion and does not represent an official position of Donald Trump or others I do not work for