Joe Biden’s fight against the $900 child-eczema cream
Purchasing prescription drugs in America can often feel like bargaining at a street market. Initially, a ridiculous “retail price” is quoted (for example, $902 for eczema cream for a child). Then, insurance is applied, followed by a layering-on of coupons, discount cards, and rebate claims. Despite all that, the amount of cash paid out of pocket is still high by international standards (the cream ended up costing $273).
Americans may not agree on much, but lowering the price they pay for medication is the most popular policy position in American politics, tied with support for Social Security. Nine in ten say this should be an important or top priority for Congress. In his State of the Union address, Joe Biden spent a full three minutes on the topic. Yet just over one in four say they are aware of President Biden’s attempts via the Inflation Reduction Act (IRA) of 2022 to reduce prices—something he is trying to rectify ahead of the presidential election in November. At least as interesting as the direct effect of Mr Biden’s landmark law is the question of what the indirect effects might be.
Americans spend twice as much on prescription medication per person as comparable countries, according to Peterson-KFF, a health-research group. This spending is heavily skewed by branded drugs with no competitors, so-called non-generic drugs. These make up 10% of prescription drugs but 80% of spending. Adjusted for inflation, spending on prescription drugs has increased from $101 per person in 1960 to $1,147 in 2021. Unsurprisingly, that scale of increase has an effect on care: nearly one in three Americans say they sometimes skip taking medication as prescribed because of the price tag.
2024-04-02 14:54:01
Article from www.economist.com