And here is a report that explores one way drug companies try to influence the negotiations in their favour: http://www.independent.co.uk/life-s...rug-firms-bankroll-attacks-on-nhs-947316.html
That is simplifying things to a unrealistic extreme, negotiating a supply contract is rarely, if ever, just about the price.,
The pharma companies quite aggressively promote their new drugs with doctors. Their marketeers who visit the doctors are not hindered by actual medicinal knowledge (rather not, because then they could be caught lying), and skirt on the border (and sometimes over) of what is permissible.
And why should what an ignorant marketer says matter to the doctors? If they're being bribed in some fashion, that's a problem. But it's a problem for any drug, me-too or not.
I am pretty sure this year one of the high-ticket drugs was approved by NICE after the manufacturer agreed to pay for half the cost of the first round of treatment. I thought I'd read about it on the BBC news site but I can't find it. Does it strike a bell with anyone else?
ETA: Found it!
This is an example of the type of complex negotiation that actually happens: http://info.cancerresearchuk.org/news/archive/newsarchive/2009/june/19234946
No, it's not just about price, it's sometimes about volume too. So you don't threaten to walk away completely, only partly. The same principle remains even in more complex contracts: you've got to forgo purchases in order to get lower prices. Otherwise you've got no leverage.
That's the collective deciding what's good for the collective.
I'd prefer to make the decisions about my own healthcare myself. If that means I can't get as much cool stuff at Walmart as someone who decides to get no health insurance, oh well.
Excuse me, I was using the 2008 numbers. If you would actually open up the link I provided you could see for yourself how the company actually shrunk from 2007 to 2008.
I didn't say they were legally accountable. They are financially accountable. If they don't provide what their customers want, the customers stop giving them money. That's a rather important accountability for anyone whose goal is to make money.
No, I've been arguing that countries that set price controls screw over the USA (and other countries who don't have socialized medicine) who don't have price controls. That's what I've been arguing the whole time. It's not fair to the people who live in the USA.
I like it when new medications come online. I don't mind a company making an 8% rate of return for developing their new and awesome innovations. I would definitely be willing to pay a bit more. I don't mind paying someone to develop and create awesome new things. Why? Because new and awesome things improve our lives. Their ability to make a rate of return is the reason why they innovate things that improve our lives.
I do something similar for a living. I create designs that enable other people to construct homes and hospitals and schools. My particular profession owns the right to those designs for quite literally forever (life + 99 years or whatever obscene amount it is now) But why should I charge at all for these designs? The things my profession creates are life-saving (they protect people in earthquakes and hurricanes), they're absolutely necessary for our current society to function the way it does. Should I not get paid for my work?
The argument that I think you're trying to make is that I shouldn't be able to charge what I feel is a reasonable amount for the new and awesome innovations I create solely because they protect peoples lives. If the real-world really worked that way I would quit my job (since I wouldn't be making anything doing it) and spend my days laughing at those who took away my ability to earn a living as they tried to construct new buildings in seismic regions.
In the end, new innovation depends upon people getting something for their work. Some people are okay with the acclaim from their peers. The rest of us prefer cold hard cash.
The entire sub-argument of an argument I made much earlier is: The USA ends up paying more than its fair share of the profit and R&D of new drugs. And I think that this is wrong. I also think price fixing by countries with socialized medicine is wrong and is one of the reasons why Americans pay more for healthcare. No one has disagreed with this point. But I've been bombarded by people exclaiming that, "if only the USA price fixed too, then everyone would be happy!". I think that would stifle innovation.
Call me whatever you like. I at least know what the definition of "Rate of Return" is.
It's not altruism. It's called getting screwed over by your friends.
Imagine going to a pub with your mates. The four of you drink an equal amount and run up a bar tab of $50. Each of your three mates pays $10 bucks, calls it a fair value for what they received and then takes off. The bartender then makes you pay the last $20. That's what's going on here.
Now what happens if the USA finds a way to prevent other countries from fixing the price of medicine? Well then, our friends the Canadians, British and French are now paying $2.50 more and the USA is paying $7.50 less.
(Please don't take this metaphor too far)
But in order to make profit they need only healthy customers. They don't want sick customers. Which rather defeats the object of the exercise.
Healthy customers care about what happens to sick customers, because that tells them the value of the insurance they're paying for.
Apologies for the string of posts, but what you're saying is that the UHC countries bully the pharmacutical companies into charging them less and in turn the pharmacutical companies bully the US into paying more? So it's not the US system that's broken, but everyone else's?
ETA: the pharma companies will not sell at a loss - if the US got it's act together and stopped paying what was demanded, the price everywhere else would go up to compensate. Or do I misuderstand the economics?
I don't know enough people to be able to make an assessment of the risk I'm running with any particular company for particular serious diseases. But if revoking coverage is such bad business, I must be able to find out the facts so that I can contribute to the inevitable boycott....
I currently have health insurance through my employer. If I get sick, I know that the insurance company will not revoke my health insurance on a technicality. I know this with absolute certainty. How do I know this, you might ask? Because I didn't have to fill out anything about my medical history when I signed up. Nothing, nada, zip. Revoking my health insurance isn't an option for my insurer. And that's the case for most people who get their insurance through work. For those who purchase plans individually, I do not know where to find those statistics, but I do know that you can protect yourself from being dropped on a technicality by filling out the application forms accurately, and buying a plan which allows automatic policy renewal.
But this discussion isn't just about revoking insurance, it's about accountability in general. And guess what: customer satisfaction surveys of different insurance providers, and different plans (I had more than one to choose from with my employer, and have in fact switched since I began my job), are not hard to come by. What happens if I'm not satisfied with my plan? I can switch to another one, as I've already done. What happens if I'm not satisfied with any of the options? I can make a stink to my employer. What happens if enough people make a stink? My employer will take their business elsewhere. The insurance company is indeed accountable to their customers, and will lose that customer if they do not provide a good enough service.
Oh, and my employer has also changed insurance providers since I started working here, too. This image you seem to have of customers trapped by insurance companies just isn't accurate.
I currently have health insurance through my employer. If I get sick, I know that the insurance company will not revoke my health insurance on a technicality. I know this with absolute certainty. How do I know this, you might ask? Because I didn't have to fill out anything about my medical history when I signed up. Nothing, nada, zip. Revoking my health insurance isn't an option for my insurer. And that's the case for most people who get their insurance through work. For those who purchase plans individually, I do not know where to find those statistics, but I do know that you can protect yourself from being dropped on a technicality by filling out the application forms accurately, and buying a plan which allows automatic policy renewal.
Make a stink how? Threaten to quit?What happens if enough people make a stink? My employer will take their business elsewhere.
I currently have health insurance through my employer. If I get sick, I know that the insurance company will not revoke my health insurance on a technicality. I know this with absolute certainty. How do I know this, you might ask? Because I didn't have to fill out anything about my medical history when I signed up. Nothing, nada, zip. Revoking my health insurance isn't an option for my insurer. And that's the case for most people who get their insurance through work. For those who purchase plans individually, I do not know where to find those statistics, but I do know that you can protect yourself from being dropped on a technicality by filling out the application forms accurately, and buying a plan which allows automatic policy renewal.
But this discussion isn't just about revoking insurance, it's about accountability in general. And guess what: customer satisfaction surveys of different insurance providers, and different plans (I had more than one to choose from with my employer, and have in fact switched since I began my job), are not hard to come by. What happens if I'm not satisfied with my plan? I can switch to another one, as I've already done. What happens if I'm not satisfied with any of the options? I can make a stink to my employer. What happens if enough people make a stink? My employer will take their business elsewhere. The insurance company is indeed accountable to their customers, and will lose that customer if they do not provide a good enough service.
Oh, and my employer has also changed insurance providers since I started working here, too. This image you seem to have of customers trapped by insurance companies just isn't accurate.
If they end up not turning enough profit from your company because of people actually getting healthcare, they can "drop" the whole company by astronomically increasing the price.
Make a stink how? Threaten to quit?