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Do you have data to back this up? Cancer treatments cost a lot per dose because they usually have relatively tiny markets (in any given year), are some of the m

Do you have data to back this up? Cancer treatments cost a lot per dose because they usually have relatively tiny markets (in any given year), are some of the most complex to develop, and treat an acute disease without the potential for long term customers. Also, much of the cost of cancer treatment is the cost of complications, clinical face time, and end-of-life care, not the drugs. If I remember correctly, the average number of prescriptions for someone aged 65-79 is about four times the national average and since they treat chronic conditions due to aging, people take them until the day they die. Since Medicare isn't allowed to negotiate bulk prices for the prescriptions, the pharmaceutical companies pretty much get to charge whatever they want for critical drugs. Just one of my 80 year old neighbors heart medications costs >$3000 per month and she's been taking it for almost 20 years, along with half a dozen other drugs. Cancer pills may cost a lot but the sheer scale of our aging population is much more relevant to overall healthcare costs.

maxerickson 10y ago
Isn't the modal number of prescriptions 0? As far as Medicare, they don't pay "whatever", they pay what everyone else pays or less. I shouldn't have just said cancer drugs. Lots of specialty and small market drugs have enormous prices. Meanwhile, statins cost $0.30 a day: https://www.goodrx.com/lipitor https://www.goodrx.com/lipitor
- akiselev 10y ago
  Do you mean the ideal number of prescriptions is zero? Medicare does pay less than other insurers but only because of a general law blacklisting companies that charge the government more than other customers (on the assumption that the govt will always be the single biggest customer but more susceptible to political influence). Drug companies keep this in mind when negotiating with insurers so it's nowhere near as effective as the NHS, which can't pass its costs onto consumers except through new legislation and negotiates for the entire UK population at the same time.

maxerickson 10y ago

Isn't the modal number of prescriptions 0? As far as Medicare, they don't pay "whatever", they pay what everyone else pays or less. I shouldn't have just said cancer drugs. Lots of specialty and small market drugs have enormous prices. Meanwhile, statins cost $0.30 a day: https://www.goodrx.com/lipitor https://www.goodrx.com/lipitor

akiselev 10y ago
Do you mean the ideal number of prescriptions is zero? Medicare does pay less than other insurers but only because of a general law blacklisting companies that charge the government more than other customers (on the assumption that the govt will always be the single biggest customer but more susceptible to political influence). Drug companies keep this in mind when negotiating with insurers so it's nowhere near as effective as the NHS, which can't pass its costs onto consumers except through new legislation and negotiates for the entire UK population at the same time.