Hard at work
This blog comes to you from Dick Ingwall via the NY
Times. It contains nothing particularly
new, but does summarize well some of the topics we have discussed many times
before. Specifically, it returns once
again to the questions “Why do drugs cost so much, and what can we do about it?”
The underlying kernel of reportage here concerns an article
published by the Mayo Clinic and signed by 100 of the nation’s top oncodocs
(U.W. and Fred Hutch are prominently represented). Here is the article:
http://www.mayoclinicproceedings.org/article/S0025-6196(15)00430-9/fulltext
And here is the gist:
1)
Cancer will effect one in three adults during
their lifetime. (Does that include skin
cancer?)
2)
Recent trends have resulted in 20 to 30% of
out-of-pocket expense by cancer patients.
This is after insurance payments.
3)
In 2014 all new cancer drugs approved by the FDA
cost over $120,000 per treatment.
4)
Given that the average household gross income
in the U.S. is $52,000/year, paying for this 20-30% of $120,000 drugs will
leave the patient and his/her family hard up for food and housing.
5)
Because cancer is predominantly a disease of old
people, and in view of the fact that old people are accumulating like ants at a picnic, this economic problem is bound to get worse, fast.
And what to do about it?
1)
Create a governmental panel to propose prices,
based on need and cost
2)
Allow Medicare to negotiate drug prices directly
with Big Pharma.
3)
Allow another governmental agency, one already
created under ObamaCare, to evaluate the drug’s efficacy, and adjust prices
accordingly.
4)
Permit importation of drugs from abroad.
5)
Prevent Big Pharma from delaying the
introduction of generic drug-equivalents.
6)
Screw around with patenting procedures,
ostensibly to make it harder for Big P to get exclusivity in the first place.
7)
Get the right, in-the-know organizations to
revise treatment guidelines.
As you know, I am suspicious of governmental panels so much
of this leaves me skeptical. However,
there being no practical way to invoke market forces in this industry,
something similar to this may be inevitable.
I found this Mayo clinic article by reading a related story
in the NY Times. The Times relates that
the Obama Administration (through the agency of Medicare) has reversed itself
and approved payment for a cancer drug called Blincyto (actual name
blinatumomab; developed by Amgen – don’t you wish you had bought its
stock?). Blincyto combats acute
lymphoblastic leukemia, described as being particularly “aggressive”. A “course” of Blincyto – two 28-day sessions –
costs $178,000, not counting hospital expenses. If you are making
$50,000/year and end up paying 20% of the cost, you are out $35,600, or 71.2%
of your yearly gross income. Let’s hope
the damned stuff works.
Here is the article:
http://www.nytimes.com/2015/08/09/us/medicare-reversing-itself-will-pay-more-for-an-expensive-new-cancer-drug.html?smprod=nytcore-ipad&smid=nytcore-ipad-share
The moral seems to be – let’s figure out how to stop people
from getting acute lymphoblastic leukemia.