Today’s Managing Health Care Costs Number is $76 billion
2. Drugs have been responsible for absolutely HUGE improvements in quality (and quantity) of life. However, pharmaceutical companies are good at pricing so that any cost saving benefit is captured by themselves. For instance, hepatitis C drugs will certainly prevent deaths, and will certainly prevent liver transplants. But the cost of those drugs is greater than the potential transplant savings. That’s true over any time horizon.
3. If drugs prolong lives, they might lead to more hospitalization and higher medical costs - but they are still providing real value.
Note that bullet point 3 above and the note on increased generic prices are courtesy of one of my colleagues, and added mid-day 7/2.