Reference no: EM133190336 , Length: Word Count: 4 Pages
Healthcare Economics Assignment - Pharmaceutical Innovation Essay
What do you think would be a feasible strategy (or combination strategies) that would balance pharmaceutical innovation incentives and lower consumer costs?
Based on the readings, write an individual essay arguing your point of view on the tradeoff between pharmaceutical innovation (as patent system and lack of price controls in the U.S. preserve financial incentives to invest in drug development) and consumer cost (higher/unaffordable drug prices).
Readings
1. From the drug manufacturers' perspective and societal perspective: read the following article estimating the economic (opportunity) cost of drug development:
DiMasi, J. A., Hansen, R. W., & Grabowski, H. G. (2003). The price of innovation: new estimates of drug development costs. Journal of Health Economics, 22(2), 151-185.
2. From the patient perspective and societal perspective: read the following opinion articles from the NY Times on patients skipping or rationing essential medications due to their high costs, frequent changes in drugs covered due to negotiations between drug manufacturers and PBMs:
The New York Times (2019) "We either buy insulin or we die." The high (and rising) cost of insulin is forcing diabetics to risk their lives to get the drug.
The New York Times (2019) It's Time for Pharmaceutical Companies to Have Their Tobacco Moment.
The New York Times (2019) Sound, Fury and Prescription Drugs.
The New York Times (2019) The Insulin Wars.
Attachment:- Readings.rar