There's no question that the cost of prescription medication is a significant driver of health insurance costs. And there's decent enough evidence that "Big Pharma" plays by ... ummm ... perhaps different rules than most industries, racking up fairly decent profits (NTTAWWT). And we hear from the "health care press" on a daily basis how bad this is for consumers and patients.
But maybe there's a good reason for this: after all, in a (nominally) free enterprise system, greater risk should justify greater return.
Okay, Henry, what the heck are you babbling on about?
Well, this:
Keep in mind that it may cost millions of dollars and decades of research to come up with even one new med, which then has to undergo the (presumably) stringent FDA approval process. And, of course, some non-trivial number of these new efforts fail to pay off.
Maybe there's some room for debate here, after all.
But maybe there's a good reason for this: after all, in a (nominally) free enterprise system, greater risk should justify greater return.
Okay, Henry, what the heck are you babbling on about?
Well, this:
"the United States generates more new medicines annually than the rest of the world combined. Specifically, it produces 57 percent of all new drugs each year. Switzerland is second with 13 percent;" https://t.co/QLE2W9hBeo— Bob Tufts (@TuftsB) November 6, 2018
Keep in mind that it may cost millions of dollars and decades of research to come up with even one new med, which then has to undergo the (presumably) stringent FDA approval process. And, of course, some non-trivial number of these new efforts fail to pay off.
Maybe there's some room for debate here, after all.
from InsureBlog https://ift.tt/2SXGswQ
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