T-rump's recent trade interference has caused a lot of debate and questions among business and economists. Medicine raises an interesting question of trade practices that has not yet been mentioned.
European editorialists and Quora posters spend some time vilifying the American health system. It is sometime difficult to understand why people outside the system feel so strongly about it; perhaps it is because there are serious problems in the health care system in the West, and the United States reminds them of it. Part of the new world movement is the acceptance that all people and countries are essentially alike and one solution will likely work everywhere. The U.S. health problems are, I would argue, quite specific.
European editorialists and Quora posters spend some time vilifying the American health system. It is sometime difficult to understand why people outside the system feel so strongly about it; perhaps it is because there are serious problems in the health care system in the West, and the United States reminds them of it. Part of the new world movement is the acceptance that all people and countries are essentially alike and one solution will likely work everywhere. The U.S. health problems are, I would argue, quite specific.
One problem--and proof of success-- is longevity.
Since 1950, longevity in the U.S. has increased 10 extra years of life. This improvement has been mainly the result of pharmaceutical breakthroughs. (Remember, the Second World War was fought without any antibiotics but scarce penicillin and sulfa powder.)
This is not without cost. R&D costs are staggering; nearly $3 billion and 10 years of clinical trials, and then government approvals for each drug, with failures along the way. But, despite our apparent enthusiasm for equality, payment of these costs is not equally distributed among users. Americans consume about 46% of the world's brand-name drugs but supply 70% of patented pharmaceutical's profits.
Read that again.
France, Norway, the United Kingdom, Japan, Canada, Italy and other government-run health systems buy identical drugs at bargain prices — usually half what Americans pay. These state-run health systems often threaten to exclude a drug from their country entirely, even if it could save lives, to extract a deep discount. Norway barred Roche's breast cancer drug Perjeta until the company slashed the price far below what Medicare pays.
Read that again.
France, Norway, the United Kingdom, Japan, Canada, Italy and other government-run health systems buy identical drugs at bargain prices — usually half what Americans pay. These state-run health systems often threaten to exclude a drug from their country entirely, even if it could save lives, to extract a deep discount. Norway barred Roche's breast cancer drug Perjeta until the company slashed the price far below what Medicare pays.
Essentially American consumers are subsidizing the pharmaceuticals used by other countries. Sort of like defense spending.
The Americans are a famously charitable people but it is difficult to be charitable --and be criticized for it at the same time.
The Americans are a famously charitable people but it is difficult to be charitable --and be criticized for it at the same time.
"We cannot all have it all," says economist Austin Frakt, pointing to new, expensive drugs for hepatitis C. "The rate of innovation will eventually exceed our ability to pay for it."
And maybe share it at low cost.
And maybe share it at low cost.
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