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This bit feels like it should have been given more detail: > In his written testimony, Jørgensen said Novo Nordisk’s insulin product Levemir was previously ava
by ZeroGravitas 2y ago
This bit feels like it should have been given more detail:
> In his written testimony, Jørgensen said Novo Nordisk’s insulin product Levemir was previously available to 90% of U.S. patients through formularies. But insurers began to drop coverage of the insulin after Novo Nordisk cut its list price, leading to only 36% of patients having access.
> That eventually drove the company to discontinue the insulin
So insurers are refusing to buy cheaper drugs? What's the story there?
- Laksen 2y agoIt's the American PBMs that make their money on the difference between the list price and the price they sell it for. Higher list price means more profit This was repeated over and over in the hearing. And apparently the regulation of PBMs (changed about a year ago) hasn't resulted in PBMs taking up cheaper drugs
- ZeroGravitas 2y agoAn interesting article on this found thanks to your help with search keywords: https://www.americanprogress.org/article/5-things-to-know-about-pharmacy-benefit-managers/ https://www.americanprogress.org/article/5-things-to-know-ab...
- emchammer 2y agoThis article is almost unbelievable. This whole thing seems like an incredibly complex racket comparable to cryptocurrency securities fraud.
- salawat 2y agoYou mean the difference between wholesale price of the manufacturer and the negotiated discount by the PBM right? Your use of pronouns obfuscates who you're talking about.
- ywvcbk 2y agoDo American insurance companies have any incentives to minimize their spending?
- Ekaros 2y agoAs in not paying out money yes. As in keeping costs low no...
- tiahura 2y agoA $ is a $.
- willcipriano 2y ago20% of 2 dollars is better than 20% of 1 dollar.
- s1artibartfast 2y agoThats not correct. It is actually the exact opposite. The ACA places profit controls on for insurance companies how much they can make as a percent of what they pay out (aka the 80/20 rule). They must pay out 80% in coverage with profit and operation expenses coming from the other 20%. Therefore, the best way to increase profit is to ensure the total price of healthcare they cover goes as high as possible. It is better to make 20% of a $1,000 drug than a $10 one.
- Bluescreenbuddy 2y agoIf a drug has low profitability, this is what happens. It's harming low cost but critical drugs