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April 23, 2024 Issues, Value

Cost Plus Drug Company CEO Mark Cuban recently pointed out that self-insured businesses could save over $70,000 per employee annually by getting their workers to switch from AbbVie’s blockbuster anti-inflammatory treatment Humira to a lower-cost biosimilar called Yusimry. Humira has a list price of roughly $7,000 per month. Since it lost market exclusivity last year, nine nearly identical copycats have hit pharmacy shelves. A year’s supply of Yusimry costs the same as just one month of Humira. Why doesn’t every employer in America follow Cuban’s advice? The answer has three letters: PBM. Click to read the...

April 16, 2024 Issues, Price and Costs

Speaking at a White House event with Sen. Bernie Sanders, I-Vt., very recently, President Biden crowed about his rapidly progressing scheme to impose price controls on prescription drugs. "Finally — finally we beat Big Pharma," he said to Sanders. Unfortunately for Americans — and indeed, patients everywhere — the Democrats' assault on the drug industry will result in fewer cures, less access to state-of-the-art medicines, and more avoidable death and suffering. Democrats gave the federal government the ability to dictate the prices of prescription drugs through Medicare...

April 12, 2024 Issues, Price and Costs

Barber et al. just published a fundamentally flawed study on diabetes medicines in JAMA Network Open (JNO). This study wrongly suggests that cost-based pricing accurately values innovative on-patent medicines, distracts from serious policymaking, and fuels political grandstanding by politicians such as Senator Bernie Sanders. Cost-based pricing could be an economically viable pricing strategy for generic drugs. Mark Cuban’s Cost Plus Drugs (CPD), launched in 2022, is attempting to disrupt the generics industry using this pricing model. CPD sells generic medicines directly to consumers...

March 28, 2024 Issues, Policy Proposals

By Sally Pipes & Wayne Winegarden  Question: What’s worse than government bureaucrats in Washington declaring the value of your medicine? Answer: Bureaucrats from Boston, London, Ottawa and Diemen establishing that value. Unfortunately, this is not a joke. It is the direction that the Institute for Clinical and Economic Review is pushing our healthcare system. ICER is a Boston-based private organization that has granted itself the right to declare how much a new medicine is worth to you. This is as troubling as it...

March 22, 2024 Issues, Policy Proposals

Medical students recently celebrated “Match Day,” when aspiring doctors learn where they’ll be spending the next few years in residency to complete their training. America needs many more physicians — as many as 86,000 by 2036, according to projections released this week by the Association of American Medical Colleges. Policymakers can help plug that gap by easing regulatory burdens that keep qualified, internationally trained physicians from practicing in the United States. Click to read the full article in the Washington Examiner....

March 19, 2024 Issues, Price and Costs

Like most pharmaceutical companies, Gilead Sciences Inc. devotes a huge amount of time and money to making sure its products are safe for patients. The U.S. Food and Drug Administration approved its drugs to fight HIV, and these medications have worked remarkably well. It then developed the next generation of HIV medications, and those too have worked well. For that, Gilead is being rewarded with lawsuits—lots of them. Earlier this year, California's First District Court of Appeal ruled that lawsuits brought by...

March 11, 2024 Issues, Policy Proposals

Any list of the world's most inhumane healthcare bureaucracies has to include Britain's National Institute for Health and Care Excellence at the top. For over two decades, the agency has employed ruthless cost-benefit analyses to effectively deny British patients access to the latest medicines. Now NICE is looking to export its expertise rationing life-saving drugs to the United States. The body recently announced a collaboration with the Institute for Clinical and Economic Review, a U.S. group that purports to determine the cost-effectiveness of medical treatments. Similar...

March 6, 2024 Briefs, CoronaVirusSlide3, Issues

The current federal regulatory process to develop monoclonal antibodies to treat mutating strains of COVID-19 imposes unnecessary hurdles that hinder the creation and approval of effective treatments for the immunocompromised, finds a new brief released today by the Center for Medical Economics and Innovation at the nonpartisan Pacific Research Institute. Click to download the brief “Monoclonal antibodies provided benefits to vulnerable populations and six different ones were authorized to treat COVID-19,” said Dr. Wayne Winegarden, director of PRI’s Center for Medical Economics...

February 29, 2024 Issues, Price and Costs

Vermont Senator Bernie Sanders called the CEOs of several major pharmaceutical firms to testify earlier this month before the Senate Health, Education, Labor and Pensions Committee, where he serves as chairman. The hearing's official purpose was to discuss prescription drug pricing. But it mainly offered Sanders a forum to castigate the pharmaceutical industry. "The overwhelming beneficiary of high drug prices in America is the pharmaceutical industry," Sanders said. "The United States government does not regulate drug companies. With a few exceptions, the drug companies regulate...

February 26, 2024 Coronavirus-Alternate2, Issues

This week, members of the World Trade Organization have convened half a world away in Abu Dhabi. But a proposal on the agenda could have profound consequences for us here in California. Representatives of the World Trade Organization’s 164 member nations will discuss whether to waive patent protections on COVID-19 tests and treatments. If California’s political leaders don’t do everything in their power to make sure that doesn’t happen, they’ll risk irrevocable damage to the state’s businesses and economy. This isn’t...

February 24, 2024 Issues, Price and Costs

The Left has long insisted that medical debt is a national crisis and that the federal government needs to do something about it. They appear to have new ammunition in the form of an analysis published this month by the Peterson Center on Healthcare and KFF. Nearly one in 12 adults — 20.4 million people — had medical debt in 2021, according to the brief. But a closer look at the numbers shows that these figures rely on some questionable assumptions. The Peterson-KFF study counts any adult with “over $250 in unpaid medical bills as...

February 19, 2024 Innovation, Issues

Cancer is becoming more common. This year, the number of new cancer cases among Americans is projected to exceed 2 million for the first time ever, according to a paper published last month by the American Cancer Society. The disease is also afflicting people earlier in their lives. Cancer diagnosis rates for people under 50 rose nearly 13% since 2000. Colorectal cancer is now the leading cause of cancer death for men under 50 — and the second-leading cause for women. Statistics like these show just how hard...

February 9, 2024 Issues, Price and Costs

By Sally Pipes & Wayne Winegarden There they go again. Free-market advocates are jeopardizing pro-market healthcare reforms based on an inability to recognize how cronyism tars the current industry dynamics. That distinction between companies operating in a free market and companies using cronyism to flourish in a government-dominated market is the key. At question are the operations of pharmacy benefit managers (PBMs). PBMs serve large insurers, employer-sponsored health plans, and government health plans. The three largest PBMs control nearly 80% of the...

November 13, 2023 Issues, Policy Proposals, Price and Costs

The price of health insurance has skyrocketed in recent years, according to a new report from the Kaiser Family Foundation. Average annual premiums for employer-based family plans have risen by 22% percent since 2018, to nearly $24,000. It's tempting to see these hikes as a shameless cash-grab by avaricious insurers. But there are more systemic factors fueling the growth of health costs. Only by attacking these root causes can policymakers bring down the cost of coverage without compromising the quality of...

November 2, 2023 Price and Costs

Last year’s Inflation Reduction Act is not proving popular with a group it aims to help — older Americans. That’s according to a recent survey from Commitment to Seniors. More than 80% of likely voters over 55 believe the IRA hasn’t helped them personally in terms of lowering the impact of inflation, consumer costs, and prescription drug prices. Almost eight in ten say the IRA is a failure one year after its passage....

October 31, 2023 Innovation

The Federal Trade Commission continues its assault on innovation and consumers’ wellbeing under the guise of protecting us from harms that are, all too often, merely speculative. In a recent example, the FTC commissioners assert that a merger of two closely connected companies poses theoretical harm to competitors. The FTC’s mission is to protect consumers by ensuring that markets are competitive, not to protect competitors. Presumably, the Commissioners imagine that the theoretical harm to competitors will somehow make consumers worse off,...

October 25, 2023 Issues, Price and Costs

There's a paradox at the center of American healthcare policy. The government will spend just shy of $2 trillion subsidizing healthcare this year — including over $500 billion on Medicaid and the Children's Health Insurance Program. But low-income Americans still struggle to afford care. According to one recent poll by the Kaiser Family Foundation, nearly seven in ten Americans earning less than $40,000 a year find it at least somewhat difficult to pay for healthcare. Read the full article at Newsmax...

October 18, 2023 Price and Costs

The pharmaceutical supply chain is rife with misaligned incentives. Due to these disincentives, policies that make sense under most market conditions create problems that harm patients. Coupling the fees of pharmacy benefit managers (PBMs) to the discounts they negotiate exemplifies this problem. Read the full article by Sally Pipes and Wayne Winegarden at Forbes.com...

October 16, 2023 Coronavirus-Alternate2

Peter Marks, director of Food and Drug Administration’s (FDA) Center for Biologics Evaluation and Research noted that “vaccination remains critical to public health and continued protection against serious consequences of Covid-19, including hospitalization and death.” But what is the protection for those Americans who can’t take the vaccine? Read the full article at Forbes.com...

October 5, 2023 Policy Proposals, Price and Costs

The Biden administration recently announced the first 10 drugs that will be subject to price controls under Medicare as part of the Inflation Reduction Act. The president celebrated the occasion, saying, "We took on Big Pharma and special interests, overcoming opposition from every Republican in Congress, and the American people won." "Won?" The next generation of American patients will not feel like they "won" when they're stuck waiting even longer for effective treatments -- if those treatments ever materialize. Read the full...