The Real Death Tax (Reprinted from 2006)

We’ve talked in the past week about the quality and costs of care in the United States. Our patent (government sanctioned monopoly) system is part of the problem.

Big PHARMA maintains that it is essential to have exclusive patents now up to 20-25 years in length to assure profits that will allow continued research and development of new drugs. As a result of Pharma’s effective congressional lobby, pharmaceuticals are the only uncontrolled, i.e. not open to negotiation and price setting, of the health care expense areas. Hospitalization, doctor’s fees, laboratory costs are all negotiable and discounted by the various health care payers. As a result, the rate of increase of spending on pharmaceuticals far exceeds that of other areas–13% a year since 1980. More on health care costs here and here.

Patent law has been carefully crafted to maximize profits of the drug industry. During the patent protected period drug companies can and do charge whatever they wish for a product. As a result, over the past 30 years drug prices have risen exponentially to unimagined levels and the industry has enjoyed record profitability “one example is that in 2002, the combined profits for the ten drug companies in the Fortune 500 ($35.9 billion) were more than the profits for all the other 490 businesses put together ($33.7 billion).”

When I started my medical oncology practice in the 70′s the cost of anticancer drugs averaged under $100/month. By the 90′s the pricing of new drugs broached the $1000/month, and by 2005 we were in the area of $10,000/month for some new drugs. For more look here.

It’s an unfortunate fact that in cancer therapy pharmaceutical costs have become what is essentially a death tax on the desperately ill. Your give your money or your life is on the line. Consider the number of people each year facing a life threatening illness. Consider also that the cost of many of these new drugs/year exceeds the average and median incomes in the U.S.; exceeds the cost of new automobiles; and over the lifetime of a patient the cost of a single medication can exceed the cost of the home of most americans. (see previous post on imitinib) Instead of a benevolent health care system in which access to care and restoration of health are the goals, we have a system whose main purpose is to maintain the profits of the health care industrial complex. The result is wealth redistribution rather than a fair price.

Pricing of pharmaceuticals is not sustainable and is the equivalent of a market bubble that cries out for correction.

Medicynic:  This post is reprinted from 2006.  The Ryan plan is the same idea.  It formalizes a tax on whatever wealth you may have  from those with limited resources to the one of the wealthiest industries.  It’s rationing of care by wealth–the new American way? 

ER Care for All, The Problem not the Solution

Hayley Barber, along with innumerable republican health care “experts” (sic),  has his foot in his mouth again.  This at the Incidental Economist. 

Medicynical Note:  FYI hoof in mouth disease is a  fatal bovine illness.

Yervoy for Melanoma $120,000 for four injections,

The good news is that there  may be a drug that improves, somewhat, the survival of patients with malignant melanoma.

The bad news is that the drug company marketing the drug, Bristol Meyers,  is charging $120,000 for a course of treatment, four injections over three months.

In that randomized clinical trial, patients with metastatic melanoma treated with Yervoy lived a median of about 10 months, compared with 6.4 months for patients in a control group, who received a treatment believed to have had little effect.

And:

More than 20 percent of the people who received Yervoy in the trial lived at least two years, and some of them much longer. But there is no way at present to predict which patients will benefit from the drug.

But, always a but:

The drawback is that loosening the restraints on the immune system can lead to dangerous side effects, the most worrisome being colitis and diarrhea, but also hepatitis, endocrine dysfunction and skin problems. The F.D.A. said that 12.9 percent of patients treated with Yervoy suffered severe or fatal autoimmune reactions.

Medicynical Note:  The drug in this early study appears to have some efficacy and significant toxicity. Half the patients treated get less than a 4 month survival benefit–if this study’s finding hold up in the future.  (It should be noted that  first studies often show better results than confirmatory studies)

Can our non-system of care afford a $120,000 drug that improves survival just 4 months?  Can 99% of our citizens afford such a drug if insurance doesn’t cover.

The pharmaceutical industry deserves credit for helping develop an  drug with some efficacy.  But charging 3-4 times the average person’s income/year, takes the pay us or die ethic to a new extreme.

The question is not whether we will ration care by cost to most people but how.  It should be understood that whatever the approach we take,  republican or democratic, the wealthy will be more able to afford that which is not covered by insurance. 

We may have the opportunity in future elections to decide. 

Drug Pricing, What Kind of Fools Are We?

That we are suckers and fools when it comes to pricing of drugs is evident from the fact that we pay much more for drugs than any other place in the world.  It make no difference  if the drug was researched and developed here or overseas, we pay more, much more.

Check our this from Bloomberg:

In the years since 2007:

The average quarterly earnings growth for drugmakers was 10 percent since the first quarter of 2007.

But there are problems with generics:

Pfizer, Merck & Co. and Bristol Myers Squibb Co. are eliminating jobs, cutting costs and shedding business units to prepare for patent expirations. In 2011, drugmakers face generic rivals to products with $34 billion in yearly sales, a figure 34 percent higher than last year. Sales at risk from patent losses will swell to $147 billion by 2015,

But, price increases have the potential to ease the pain:

Most U.S. revenue growth in the pharmaceutical industry will come from price increases after some drug costs were raised more than 10 percent, Bernstein’s Anderson wrote in an April 12 note. Pricing outside the U.S. probably declined after cost reductions were implemented last year in at least 10 European countries, he said. (Emphasis by medicynic)

Medicynical Note:  What’s impressive is the fact that health reform is already having some effect on pricing and that the industry expects the effect of the reform to be lower prices, and lower profits.  It’s about time.

Novo TFF for Glioblastoma, better than nothing?

A New device for glioblastoma, reports survival as good (sic) as chemotherapy in relapsed brain tumor patients, without side effects.

The FDA approved the device for patients with aggressive brain tumors that have returned after treatment with chemotherapy and other interventions. Patients with recurring brain cancer usually live only a few months.

Studies showed that people using the device lived about as long as those taking chemotherapy, roughly six months. However, patients using the device had significantly fewer side effects.

And also noted:

A 237-patient study failed to show a survival benefit for patients using the device, compared with those taking chemotherapy. Patients in both groups lived just over six months, on average.

Medicynical Note:  The efficacy of Novo TFF is  minimal.  The study reports a survival of just 6 months after evidence of recurrence in patients treated with radiation and chemotherapy.  The results speak more to the ineffectiveness of  chemotherapy after relapse, than to the effectiveness of Novo TFF. 

It remains to be seen whether Novo TFF (or salvage chemotherapy) is better than supportive care (Hospice) in this situation.  It certainly will be more expensive.

U.S. Poverty and Still Birth Rates

While we are in the midst of  cutting  health services to the poor, uninsured and most vulnerable in our population,  consider the U.S. rates of still births among these groups.  This from the Washington Post:

In the United States, the stillbirth rate is twice as high for black women as white women and is also higher in households with less income and education. Lowering the rate depends in large part on reducing risk factors in the mother, such as obesity, smoking and high blood pressure, said Wes Duke, an epidemiologist at the Centers for Disease Control and Prevention who helped write one of the Lancet papers.

Medicynical Note:  If we care about the health of our population, saving money by cutting services to those in the greatest need is not the way to go.  But then again, who said we care?

Show Me the Money — Military Operation in Afganistan, NOT winning the hearts and minds

Curious about the military and it’s bang for the buck?  Trillions spent and what to we have to show for it?  Osama Bin Laden?  Political Progress?  No, a Nathans and TGIF’s.  Makes health care waste look trivial!

This from Alex Berenson via The Best Defense:

The soldiers and contractors who work at Kandahar Air Field call this giant base KAF, pronounced “calf.” As in fatted. Kabul is the nerve center, the brain, for the war in Afghanistan. But KAF is the mouth and the stomach, the communications and supply center for the 70,000 American soldiers and Marines fighting in southern Afghanistan.

Of course, fighting is a relative term. If they wear uniforms, the ladies and gents at KAF are counted in that total, though they’re about as likely to be in a firefight as the average Parisian. The kaf-firs are required to wear strips of yellow reflective tape if they walk outside after dark. The rule is a concession to the fact that, despite the occasional rocket attack, they’re as likely to die in a traffic accident as from hostile fire. Frontline soldiers refer to the folks at KAF as POGs, pronounced pogues. POG may or may not stand for “people other than grunts.” Either way, the phrase isn’t a compliment.

And:

I walked, and walked, and walked some more. The base seemed endless. KAF is roughly three miles wide and two miles long, one-fourth the size of Manhattan. I wondered just how many people lived here. The consensus figure was north of 30,000, though no one really knew. Besides the Marines and Army, the Navy and Air Force had 5,000 people here, the British and Canadians thousands more. The French had offered a detachment of Mirage jets. Belgium, Italy, and a dozen other nations were here too, supporting the war one cappuccino at a time. KBR and Dyncorp and scores of other private companies fielded their own armies: contractors who cleaned the toilets, ran the chow halls, built the gyms, trained the bomb-sniffing dogs, and serviced the phones. The private workers were even more diverse than the soldiers. KAF is a real United Nations, the world coming together to make war. Only one country is missing: Afghanistan itself. Aside from a few guys selling carpets, the locals are generally not welcome.

After some false starts, I finally reached the perimeter. I expected to see Kandahar itself, but the city was invisible. It lies miles north of the airfield, hidden behind a low mountain, a brown fin that overlooks the base. The only Afghans I spotted were farmers grazing goats hundreds of yards away from the razor wire and high-security fence.

Medicynical note:  Read it and weep.  Is there anything that cannot be subverted for excessive profit?  Probably not.

Guess who pays?

Who’s Happy About a U.S. Government Shutdown? Top Ten List

Who’s happy about a U.S. Government shutdown:

  • Osama Bin Laden — Forces supported by Bin Laden bankrupted the Soviet Union.  We went to war and didn’t bother paying for it, and are incurring trillions in debt.  He’s delighted that he’s bankrupting us and that we’re asking the elderly, the poor and sick to pay for it.  Nothing like turmoil.
  • The Tea Party — they supported tax cuts for the wealthy leading to hundreds of billions of dollars in debt while closing down the government ostensibly to save a few billion dollars taken from the poor and middle class.   They appear delighted as well.
  • The Republican Party which for some reason thinks this action will further it’s political vendetta against taxes, regulation, family planning, gays, pollution control and America’s safety net.
  • The Chinese,  Russians and martinet rulers in the middle east, who hope this public folly will put an end to the notion of the superiority of our system.
  • The president of Zimbabwe, Robert Mugabe, for the same reason
  • The Khadaffi family who wonder if our political unrest will undermine NATO’s intervention.
  • Banks and other business interests who hope the closure will mean the end of government regulation — The collapse of the financial industry was not enough “success” for these interests.
  • The religious right which doesn’t think government should support family planning and opposes gay rights.
  • The Koch brothers and other polluters who oppose environmental standards for the coal industry (these billionaires own a large group of coal related companies).
  • The Chamber of Commerce who believes that low taxes, low wages, no regulations and a poor safety net for the poor, infirm and disabled is the way to prosperity

Medicynical Note:  Can you think of others?

Overplaying their hand — Abolish Medicare, Close down the Government, is this a game plan?

Our rightist friends giddy with power in one week propose to abolish medicare and then close down the government over piddling budget cuts.  At issue in the closedown is a few billion dollars difference between them and the Democrats.

Meanwhile they, the republicans, added 400 billion dollars/year to our deficits in tax cuts to the wealthiest citizens.

This in what was formerly the leader of the free world.

Ryan’s Plan: Rationing Care by Wealth, the New American Way

The CBO sent Representative Ryan a letter analyzing his proposals.

Federal payments for Medicaid under the proposal would be substantially smaller than currently projected amounts. States would have additional flexibility to design and manage their Medicaid programs, and they might achieve greater efficiencies in the delivery of care than under current law. Even with additional flexibility, however, the large projected reduction in payments would probably require states to decrease payments to Medicaid providers, reduce eligibility for Medicaid, provide less extensive coverage to beneficiaries, or pay more themselves than would be the case under current law. (Medicynical emphasis: The indigent will either get less care or  to pay for it themselves (really!)

A private health insurance plan covering the standardized benefit would, CBO estimates, be more expensive currently than traditional Medicare. Both administrative costs (including profits) and payment rates to providers are higher for private plans than for Medicare. Those higher costs would be offset partly but not fully by savings from lower utilization…..  (Medicynic: meaning people who can’t afford care won’t get it) Moreover, CBO projects that total health care spending for a typical beneficiary covered by the standardized benefit under the proposal would grow faster than such spending for the same beneficiary in traditional Medicare under either of CBO’s longterm scenarios.

Medicynical note:  Yes, this is the same CBO that Representative Ryan and his followers criticized when it projected significant budgetary savings for the Health Reform package passed by the last congress.

As noted yesterday, there is nothing in this regarding insurability, community rates for the insured, and mandating coverage of pre-existing illness.  It seems a license for insurance companies to cover the healthiest and leave the rest to no or inadequate  coverage.   It’s a cynical and somewhat sophisticated way to ration care by monetary resources and wealth.

It should be noted that almost half of baby boomers and succeeding generations of retirees have inadequate retirement savings:

Excluding their homes, 24 percent of boomers say they have no retirement savings. Those with nothing include about 4 in 10 who are non-white, are unmarried or didn’t finish college.

At the other end, about 1 in 10 say they have banked at least $500,000. Those who have saved at least something typically have squirreled away $100,000, with about half putting away more than that and half less.

Every other industrialized nation provides health care coverage for virtually it’s entire population.  Cutting access to care, providing inadequate  coverage for the aged, sick, disabled and infirm, and doing nothing about the 50 million uninsured appears to be the new American way.

More here: Representative Ryan Proposes Medicare Plan Under Which Seniors Would Pay Most of Their Income for Health Care