Monday, June 15, 2015

Price of drugs

Pharmaceutical pricing

Crippling

Jun 4th 2015, 15:09 BY N.L. | CHICAGO

THIS week health insurers have begun revealing proposed rate increases to their health-care plans for 2016. These potential hikes, which in some cases exceed 30%, can be partly explained by the fact that insurers low-balled their prices in the early days of the Affordable Care Act in order to gain market share. But there is another reason: higher drug prices. Prescription drug spending increased 13.1% in 2015.

This rise is partly explained by some new drugs for Hepatitis C. More trouble is on the horizon. At the annual meeting of the American Society of Clinical Oncology (ASCO) in Chicago this week, scientists announced that new immuno-oncology drugs work in a wider range of cancers, and even better when given in combination. The problem is that these drugs are some of the most expensive the country has ever seen.

“These drugs cost too much,” said Leonard Salz, an oncologist at Memorial Sloan Kettering Cancer Centre, in a high-profile speech at the meeting. At $295,000 a year, the price of combination therapy is unsustainable, he explained. At a big drug-sponsored conference, this was like swearing at a vicar's tea party. The fact that the bad news about prices somewhat eclipsed the good news on cancer treatment was an irony lost on no one. And the problem of drug costs is expected to only get worse as Americans get older and fatter and the rates of cancer go up.  [More...]