Econ 590 chapter 17 drugs.pptx - Chapter 17 the prescription drug industry Prescription drugs in the healthcare system The basic idea is that

Econ 590 chapter 17 drugs.pptx - Chapter 17 the...

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Chapter 17: the prescription drug industry
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Prescription drugs in the healthcare system The basic idea is that prescription drugs can be used as a replacement for or a part of other medical treatments
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However, if drugs are too expensive, patients may under utilize them New therapies may not be used Or patients may cut back to less than the suggested dose Drug prices in general, and with higher copays and co insurance, the burden on patients have been increasing
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Trends in drug prices Some controversy about how to measure Prescription drug price trends (which drugs; which price measure, etc. -prices-are-falling-but-critics-say-its-report-is-flawed/ But, general agreement that prices are rising much faster than inflation jumped 10.5% over the first six months of 2019 not as fast the 15% seen during the same period last year but still four times faster than inflation -times-inflation/
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Impact of drug price trends In a Gallup poll in September: 22.9% of respondents reported they lacked the funds this past September to pay for a prescription during the previous 12 months, up from 18.9% in January. All totaled, about 58 million adults experienced “medication insecurity,” according to the latest Gallup Poll. s-gallup/
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Drug prices in the U.S. vs. other countries nationalPricesTopSpendingPartBDrugs.pdf
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Increases in drug prices in federal programs
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Partial cause: Biologics and expensive new drugs Humira Groundbreaking (biologic) treatment for arthritis Largest selling prescription drug in america Currently costs $38,000 a year
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But new, improved (and therefore more expensive) doesn’t explain everything: Martin Shkreli purchased a company called Turing Pharmaceuticals in 2015 Turing held the patent for a drug called he bought a drug called Daraprim, which was invented decades earlier used to treat taxoplasmosis The price of this drug went from $13.50 a pill to $750 a pill in the summer of 2015.
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Perhaps the worst case: insulin the average list price for insulin nearly tripled between 2002 and 2013, according to the American Diabetes Association. Fifteen years ago, for instance, a patient with diabetes might have paid $175.57 for a 20-milliliter vial of the long- acting insulin Humulin R U-500. Today, that medicine would cost $1,487.
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