Cost of prescription drugs is spinning out of control
When health care premiums rise, the root cause driving the increase is typically ascribed to the insurance companies. Let’s revisit this notion. Marathon Pharmaceuticals recently announced that it planned to increase the price of its muscular dystrophy drug to $89,000 a year – a 70-fold increase. No, this is not a typo. This equates to a 7000 percent increase. Why does Marathon exact this price inflation? Because it can.
The company’s primary focus is less concerned with the negative impact on those who battle the disease, and more often on the growth of shareholder value. Remember that many of the insurance companies are not-for-profit. Their energies are focused on healthy outcomes for their members.
While Congress has identified the issue, the bleeding will continue while it is mired in analysis paralysis. Let’s not confuse activity with outcome. The time to address this egregious dynamic is now.