Did anyone else catch 60 Minutes last night about the cost of prescriptions? The city of Rockford IL is self insured and noticed a dramatic spike in their prescription costs. Turns out they were being charged $40,000 for a vial of medication from Express Scripts (whom they hired to keep their prescription costs down). Not that long ago the same medication was $40 a vial. The manufacturer bought the only competition for their drug and shelved it and then jacked up the price. To add insult to injury, Express Scripts is the only distributor of this drug, essential serving at least two masters. How can they promise to keep the cost of a drug down when they have a vested interest in making the most money possible off of it? Multiply this scenario times the number of possible prescriptions and it is no wonder health care will be our undoing.
I saw this and I hope the attorney suing the pharmaceutical company and Express Scripts prevails. I also hope that someday will will see legislation to prevent this business model from persisting.
I just wrote to my senator asking her to familiarize herself with this broadcast and push for transparency and more choices in healthcare. It should fall on deaf ears.
I saw it as well. With so many different companies making money at each step of the way I doubt major changes will be made. The consumer is at the bottom and I have little faith that is going to change.
My RA medicine costs several thousand dollars a week for a small shot. Why do they charge it? Because they can. Free market and all that. Pay for the medicine or die.
I saw it. Not surprised but pretty disgusted. They aren’t the only ones doing this gambit.
I did a brief search–there have been studies of the pricing on Acthar ( the 60 min report focus) from 2009.
It was 20K then and has since doubled. It’s been a LONG time since the 40 dollar price.
Acthar is used for Infantile Spasms which is about the only real indication that may require it. And that particular problem is rare.
INCLUDING infantile spasms, most if not all other indications (MS, RA as examples) for the drug have better or as good alternatives which are much cheaper.
Since this is the case, obviously advertising for the drug needs to be stepped up to even keep it on the shelf (or the alternative is to “gasp” make it priced in line with alternatives).
My early conclusion is that it is (in this case) priced to get as much money out of the insurance companies (and medicare as government insurance) as legally possible. Big money grab and nothing else. Once nobody orders it–it’ll go back to normal.
They are “making hay while the sun shines” on the insurance company tab.
IF you don’t have insurance–you can apply through one of their programs to get it at a decent cost.
Many drugs are effectively monopoly or oligopoly markets. Lack of price sensitivity of and transparency to the users makes it worse.
@gouf78 The show said it was $40 in 2001, $33 in Canada. @romanigypsyeyes they are trying to market this same drug to adults with RA. Careful they don’t buy your existing drug and start charging $40,000!
It was 40 dollars in 2001, 20K in 2009, 40K in 2018.
And it’s not better than it’s alternatives. Except in a few cases–don’t be one of those cases.
Express Scripts has a reputation as a truly terrible, chaotic company to work for. Knowledge consultants avoid it like the plague. I am not surprised whenever I hear about issues with them.
And here’s the problem with 60 minutes. Not exactly up-to-date reporting. (unless I missed a disclaimer somewhere)
I found this on a CNN report dated January 2017. (money.cnn)
Over a year ago.
A drug maker was accused of slowly hiking the price of a life-saving medication used to treat infants from $40 a vial to more than $34,000 a vial, and preventing other pharmaceutical firms from creating a competitive drug.
The company, Mallinckrodt, agreed Wednesday to settle charges of anti-competitive practices by paying a $100 million fine and allow a competitor to produce a similar medication.
The Federal Trade Commission announced that the deal was reached with the FTC and three state attorney generals.
The drug, H.P. Acthar Gel, is used to treat infantile spasms and multiple sclerosis. A spokesperson for New York Attorney General Eric Schneiderman – who was involved in the settlement – said the drug is typically prescribed in “life-saving situations.”
They need regulation. In my business, they call that front running and you can end up in jail.