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Hmmm… what does the average KS patient cost to their insurance company? What is the likelihood of research finding treatments that will reduce that cost, and b
by freen 5y ago
Hmmm… what does the average KS patient cost to their insurance company?
What is the likelihood of research finding treatments that will reduce that cost, and by how much?
I wonder if a financial instrument could be crafted that captures a potion of future insurance company savings in return for funding research now.
Probably would require some concessional, first loss funding, or perhaps a philanthropic evergreen fund.
- halukakin 5y agoThat's a good question. Several days/hours worth of PT. Hospital visits/stays every few months. Lab work. That should add up to something for the insurance companies.
- freen 5y agoSo, $/patient/year * # of patients = total annual cost to insurance industry. A therapy would reduce cost per patient by $x/year. Potential payment to investors in therapy could be 0.5x/year. Someone might be willing to buy that future cash flow now. Hard to pull off: gotta build a consortium of all insurance companies in US, possibly national health systems in the world, get them all to agree on a current cost and value of a cost reduction. Then have to have a reasonable degree of certainty in the cost to produce a novel therapy, and potential value of said therapy. However, once you create the process for the first of these financial instruments, subsequent instruments should be much easier. If there are many such groups of people with rare diseases, banding together to create the process could be a thing.