Re:Dean Kamen: Healthcare Debate "Backward Looking"
by asmithmd1 on Friday August 07, 2009 @04:39PM
(#748499)
"A price control in Canada is effectively subsidized by US consumers of a given drug" I think that is the crux of his point, if the US didn't have these crazy high prices - then the drug would not have been developed.
I liked this quote: "Every drug that's made is a gift from one generation to the next because, while it may be expensive now, it goes off patent and your kids will have it essentially for free."
The high cost in the US is paying for the R&D that makes the drug possible
Re:Dean Kamen: Healthcare Debate "Backward Looking"
by blasdel on Friday August 07, 2009 @05:25PM
(#748578)
The drug companies spend almost nothing on R&D, not compared to what they spend on consumer advertising, marketing to doctors, regulatory compliance, lobbying, civil defense lawyering, and patent lawyering.
Re:Dean Kamen: Healthcare Debate "Backward Looking"
by yummyfajitas on Friday August 07, 2009 @11:21PM
(#748930)
Typically 15-20% of their expenses are spent on R&D. The cost of marketing is also about 15-20%. This is roughly the same as any large tech company. Compare Merck and Johnson&Johnson to Google or Intel.
http://www.google.com/finance?q=NYSE:MRK&fstype=ii
http://www.google.com/finance?q=NYSE:JNJ&fstype=ii
Re:Dean Kamen: Healthcare Debate "Backward Looking"
by profgubler on Friday August 07, 2009 @10:05PM
(#748866)
Marketing does not raise the cost of Healthcare and medicine, but those lawyers you mention sure do.
It's generally very difficult to compare the cost of specific services in any meaningful way. For instance, many countries institute price controls on medication, cutting the cost of some prescriptions to 30% of what they'd cost in the US. However, some of these drugs were developed in the US based on US patent law and with the assumption of a certain amount of profit from US consumers. A price control in Canada is effectively subsidized by US consumers of a given drug, in lots of cases.
A great deal of the costs we pay come as a result of artificial scarcity of both drugs and medical services. The result of legislation, fears of malpractice, and prescription requirements mean that treating a simple sinus infection (which I can diagnose reasonably well myself) costs ~$150 or so after the doctor visit and trip to the pharmacy. There are a great many ways to attack that scarcity, but we're not really considering them (unfortunately).
Dean Kamen has a good point. The level of medical care we can provide to people is both insane and insanely expensive. High prices are rationing. What we need to do is attack the high prices that are artificially inflated.