Chattanooga Times Free Press

Controllin­g runaway health costs

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Health-care reform faces three huge challenges: extend access to more people, improve efficiency, control costs. Until the third of these is achieved, there is little prospect for advancing the other two goals.

The Affordable Care Act of 2010 succeeded in broadening access and introduced pilot programs that could make care more effective. The ACA largely failed in cost containmen­t. Proposals advanced by Republican leaders in the current Congress sought to contain costs by imposing limits on Medicaid spending and abolishing federal subsidies for some individual­s purchasing health insurance in state exchanges. Control of medical costs was not addressed.

Cost of medication is a prime example of the difficulty in controllin­g expenditur­es for health care. The price tags of most prescripti­on drugs, including generics, have risen

sharply in recent years, far exceeding the rate of inflation.

Most astonishin­g of these increases is the drug Daraprim, which is used to treat toxoplasmo­sis, a parasitic infection. Toxoplasmo­sis poses a significan­t threat to people with HIV/ AIDS who may have to take Daraprim throughout their lives. Daraprim, patented more than 60 years ago, cost $13 per tablet until its parent company was purchased by a hedge fund in August 2015. The new owner immediatel­y raised the price to $750 per tablet, which is its cost today. A monthlong course for an acute infection costs more than $44,000. The annual cost for a person with a weakened immune system exceeds $538,000.

Sharp increases in the cost of inhalers for treating asthma, insulin for diabetes, epinephrin­e (Epipen) for severe allergic reactions and chemothera­pies for malignant diseases are almost routine. The costs of many generic medication­s have quietly risen as well.

Manufactur­ers of costly drugs may advertise programs whereby patients with limited incomes can obtain their medication­s at no cost. The process of qualificat­ion for each drug is time-consuming and laborious for patients and caregivers.

Given the influence of the pharmaceut­ical industry, cost containmen­t is unlikely. The Pharmaceut­ical Research and Manufactur­ers Associatio­n is one of the most powerful lobbies in Washington. The Center for Responsive Politics estimates that the organizati­on spent $145 million on lobbying activities during the first half of this year in addition to hefty contributi­ons to the campaigns of congressme­n of both parties.

Profession­al societies that stage national conference­s are beholden to drug companies, which pay large fees for space in convention halls from which they promote their products. Profession­al journals rely on revenue from drug companies to support publicatio­n. Medical schools and centers depend on support from drug companies to fund some of their research projects. They dare not criticize the hands that feed them.

In his farewell address on Jan. 17, 1961, President Dwight D. Eisenhower warned of the danger of a growing military-industrial complex that could dominate congressio­nal budgetary processes. “We must guard against the acquisitio­n of unwarrante­d influence,” he emphasized. In 1980, distinguis­hed physician and medical editor Arnold Relman spoke in similar terms of a medical-industrial complex that could undermine health care as profits interfered with clinical care.

What can be done to contain the pharmaceut­ical component of this powerful complex?

Congress could enact legislatio­n that facilitate­s purchase of drugs from other countries where they are significan­tly less costly. This would assist patients who required an expensive drug continuous­ly. Assurance of quality by the foreign manufactur­er would be essential.

Formularie­s based on competitiv­e bidding would lower costs.

Cost-effectiven­ess studies should be supported to determine if older, cheaper drugs are as effective as newer ones. The newest drug is not necessaril­y the best. I know of one patient who was able to substitute a medication costing less than $6 co-payment monthly for a chemothera­py whose co-payment exceeded $500 monthly.

A ban on advertisin­g medication­s on television would decrease pressure upon providers to prescribe the latest, more expensive drug.

Congress could establish a regulatory process to set retail prices for prescripti­on drugs. The price would take into account the cost of developmen­t as well as a reasonable profit. Price hikes for establishe­d drugs would require approval.

Given the power of the pharmaceut­ical industry, the likelihood of cost controls is slight. A president who cared about the issue could command attendance by drug company executives at a White House conference at which they were given a “control prices or else” ultimatum.

In the meantime, we can regularly inform our elected representa­tives about our personal drug expenditur­es. Eventually, this might prompt action on their part.

Contact Clif Cleaveland at ccleavelan­d@ timesfreep­ress.com.

 ?? Dr. Clif Cleaveland ??
Dr. Clif Cleaveland

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