Former FDA commissioner Dr. Robert Califf and former Acting Administrator of CMS Mr. Andy Slavitt just wrote a timely article
US drug costs have reached unacceptable and unsustainable levels. Evidence shows that “financial toxicity” arising from drug costs and other medical expenses is reducing financial security for many families1 and prompting difficult choices, as patients defer or forgo therapies they cannot afford.2 In stark contrast, comparable countries negotiate drug prices and use drugs more effectively. Recent data suggest that other high-income countries have an average life expectancy approximately 3 to 5 years longer than that of the United States, which ranks last among high-income countries and is losing ground compared with peer nations.3 Although drug prices account for only part of these trends, they nevertheless add to disparities that dominate the trajectories of US health outcomes.
Under the current US system, drug manufacturers estimate what the market will bear for a novel therapy. Then, if there is concern about negative publicity about drug prices, a fraction of the cost may be subtracted, at least while attention persists. Absent competition or negotiation, this fraction is determined by the company’s internal moral compass and the degree of awareness in the biomedical ecosystem, which is often driven by public perception of the specific disease.
READ the entire article HERE!