As a quick follow-up to my post about Daniel Weintraub’s self-insurance advocacy, I offer a challenge. Weintraub’s employer has an editorial today concerning the price of health care:
Avistan as a colon cancer medicine has been costing about $50,000 a year. The cost of the same medicine as a breast and lung cancer treatment is expected to be $100,000 a year.
The dosage will be higher for these treatments, but the incremental increase in manufacturing cost is minimal. So what’s going on?
Genentech is signaling that the higher price to treat breast cancer reflects the higher value society places on fighting this disease. That’s different; the usual pharmaceutical industry response is that the high prices are necessary to recover the research and development costs.
That’s the free market in action, Mr. Weintraub. Breast cancer is pricier than colon cancer. Now, I don’t know anything about Mr. Weintraub’s financial situation, or his family’s. But let’s imagine that his wife, mother, or sister is looking at a minimum $100K bill just for this pharmaceutical treatment for breast cancer.
I wonder if he’d so glibly to dismiss health insurance then? Or is Mr. Weintraub’s family so rich that they would never feel a $100K bill for a drug? If so, he doesn’t have much business lecturing the rest of us about how we ought to pay out of pocket for our medical care.