Health Insurance & Drugs

[xoxoxoBruce]

Ann Lovell is a 62-year-old teacher in Utah. She has rheumatoid arthritis and the prescription drug that allows her to keep working, not go on disability, costs $62,000 a year.

The insurance company that insures public employees doesn't want to pay that $62,000 so every three months they fly her to san diego, escort her to a Tijuana Hospital where she sees the same doctor each time, gets a new prescription, has it filled, is escorted back to the airport, flies home and gets $500 in cash from the insurance company.

The insurance company pays for the plane, hires the escorts, makes sure the drugs are the same quality, gives her $500, and saves over half the $62,000. They are only doing this with ten people because of the convoluted drug laws on what can and cannot do.

What's wrong with this picture?


https://marginalrevolution.com/margi...on-prices.html

[Gravdigr]

Momdigr's Remicade treatments are ~$6500-$8000 every 6 - 10 weeks currently...That's the full hit. Doctor, drug, infusion, and what all. Idk what her out-of-pocket is.

[Clodfobble]

All I can say is good for the insurance company for behaving like it's an open market, since that's supposedly what we have.

[Griff]

Reportedly.

[tw]

Originally Posted by xoxoxoBruce

What's wrong with this picture?

That happens when business school graduates take over. When profits matter and a product no longer does.

In productive industries, cost of a product constantly decreases. And does not increase until the product is obsolete. In fact, cost increase is often an indicator of obsolescence.

Costs decrease every year only when innovation is happening. Costs increase when cost controls exist - innovation is stifled.

Drug industry has been raising prices on all drugs, in part, because innovation is stifled by top executives from business schools. They got George Jr to pass laws that make it illegal (I believe a felony) to get your prescription filled in Canada or Mexico. To increase drug prices. (Same drug from the same factory that typically costs 60% less there.)

In Merek's case, he became president because he was a lawyer who successfully subverted the discovery process in some 13 multi-million lawsuits. Merek, once known for innovation, is also raising prices. (Same guy also blamed Paterno for pedophilia without doing any investigation.)

Martin Shkreli bought a drug company that makes a 62 year old Aids drug. Then raised the price 5,000%. Claiming he needed the money to innovate. Funny how industries that do innovation are actually lower costs every year. And companies run by business school graduates even run to the government for more money and protection.

The pill costs $1 to make. Sold for $13.50. He raised the price to $750. He did exactly what business school graduates are taught and say it is good business.

Productive companies have bosses who come from where the work gets done. And do not reap $millions profits from companies that never made a profit - ie all Trump Casinos.

[Gravdigr]

TTW;DR

Too TW; Didn't Read