The costs of many newer medications make it difficult or impossible for patients who either have no medical insurance for medication, lack the resources to pay out of pocket, have high deductibles, or have large copays.
One example: A very effective medication regimen for Hepatitis C which can cost up to $84,000 over a three-month treatment. The same treatment in other countries costs about $2,000, according to a
New York Times editorial. One argument made by the pharmaceutical firm is that the long-term cost of Hepatitis C is greater than $84,000. However, an independent analysis by the Institute for Clinical and Economic Review said projected savings from reduced medical costs in later years would not come close to offsetting the initial cost. Fortunately, there is now competition among pharmaceutical firms with other effective treatments available for Hepatitis C.
Similarly, the price of many cancer drugs is also soaring. According to an Associated Press article, new cancer drugs cost about $10,000 per month.
The American Society of Clinical Oncology proposed a cost-effective evaluation based on how much good the medication is likely to do. The “scores” for value are based on how much more they improve survival or provide additional time until the cancer worsens. Additional credit is given for greatly relieving symptoms or mitigating side effects.
Pharmaceutical firms spend billions on development and many new drugs never make it to market. Still, we do need to be mindful of what is affordable for an individual and our nation. America already spends much more of our Gross National Product (GNP) on healthcare compared to other developed nations with similar or better outcomes as measured by life expectancy, infant mortality, and other recognized statistics.
In past times these generic drugs were manufactured by many different companies which resulted in competitive pricing and consequently lower costs. Lately, we have experienced single-source generic drugs which have increased their prices multifold. Pills that cost pennies in the past now cost dollars. Common intravenous medications for blood pressure support have tripled in price. Most hospitalizations that are paid for by insurance companies pay a flat amount based on the diagnosis. So, the cost of medication is not initially paid for by the patient receiving care; but with time, the insurance premiums increase to cover the cost of care. One way or another, we all pay.
It is wonderful that we can develop so many new medications. However, cost is a consideration, and cost-effectiveness or value (benefit/cost) matters for all of us. We cannot continue to have rising costs if we want to accomplish our goal of having everyone live a longer, happier, and healthier life.