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Illinois governor signs law capping insulin costs at $100 per month

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Re: Illinois governor signs law capping insulin costs at $100 per month

#21

Post by ikeboy »

Someone1234 wrote: post #8

I'm really past the whole "pharma need to charge high prices to fund research" line of argument. Aside from being factually untrue (research funding is dwarfed by marketing for example[0]), it is also arguing for a continued unhealthy relationship with pharmaceutical care. A large amount of research is currently publicly funded. Either via public academic research or directly. When that research bears fruit it is oft…

You're looking at the wrong data.

You need to look at return on capital. Right now the return on capital in pharma is below the cost of capital and it's trending towards zero. The inevitable result is significantly lower funding for research. https://endpts.com/pharmas-broken-business-model-an-industry...

Re: Illinois governor signs law capping insulin costs at $100 per month

#22

Post by toomuchtodo »

slowhand09 wrote: post #13
sorrymate wrote: post #2

Best line in the very short article “Health care is a right for all, not a privilege and that is why I am so proud that we created an insulin price cap that successfully puts patients above profit,” according to Gov. JB Pritzker.

So the next step is to nationalize the facility that manufactures it, the testing of it, the distribution of it. All taxpayers will pay for it. And the ubiquitous govt will have to compensate the drug companies for the taking of their intellectual property. Welcome to Venezuela.

Insulin is a generic. No one is required to be compensated.

Pharma had their chance to be reasonable. That time has passed.

Not to say that we shouldn’t appropriate intellectual property when necessary (eminent domain or not respecting a patent, as has happened in India and Canada), it’s just not necessary in this case. That doesn’t make us Venezuela, that makes us pragmatic.

Re: Illinois governor signs law capping insulin costs at $100 per month

#23

Post by baron816 »

outlace wrote: post #7

Has there ever been a price control experiment that hasn't resulted in even worse problems?

Price controls are usually really bad. But medicine is a different case for many reasons I don’t want to get into now. Lots of countries do control prices of medical care without restricting supply.

Re: Illinois governor signs law capping insulin costs at $100 per month

#24

Post by throwaway55554 »

Someone1234 wrote: post #8

I'm really past the whole "pharma need to charge high prices to fund research" line of argument. Aside from being factually untrue (research funding is dwarfed by marketing for example[0]), it is also arguing for a continued unhealthy relationship with pharmaceutical care. A large amount of research is currently publicly funded. Either via public academic research or directly. When that research bears fruit it is oft…

The problem is convincing Americans. There is a significant population of people who would never vote for this because it would benefit those who don't work and pay taxes. They are so stubborn about this that they are willing even to let pharma prices exceed their own grasp.

Re: Illinois governor signs law capping insulin costs at $100 per month

#26

Post by theandrewbailey »

jerf wrote: post #14
save_ferris wrote: post #5

Earlier quoted context omitted.

How will people lose their insulin over this?

If you can only charge $100, but it costs $110, what happens isn't that it gets sold at $100 anyhow. What happens is that it doesn't get sold. Nobody has an obligation to manufacture insulin. I'm not saying the costs are $110. I don't know. I'm just explaining why this can result in lost insulin.

Manufacturers that can't (or won't) sell a month's worth of insulin for $100 will be replaced by those who can.

Re: Illinois governor signs law capping insulin costs at $100 per month

#27

Post by pjc50 »

jerf wrote: post #14
save_ferris wrote: post #5

Earlier quoted context omitted.

How will people lose their insulin over this?

If you can only charge $100, but it costs $110, what happens isn't that it gets sold at $100 anyhow. What happens is that it doesn't get sold. Nobody has an obligation to manufacture insulin. I'm not saying the costs are $110. I don't know. I'm just explaining why this can result in lost insulin.

https://www.businessinsider.com/insulin-prices-could-be-much... : a year’s supply of human insulin could be $48 to $71 a person and between $78 and $133 for analog insulins.

That's well below the $1,200 a year cap.

Re: Illinois governor signs law capping insulin costs at $100 per month

#28

Post by koverda »

mytailorisrich wrote: post #19
save_ferris wrote: post #5

Earlier quoted context omitted.

How will people lose their insulin over this?

If the law simply prevents prices higher than $100 in Illinois then manufacturers and distributors might stop selling in the state or only take orders from the state if they have surplus. Either of which might hit availability in the state, especially if the industry tries to make an example out of this. I guess it also depends on the profit margin at that price and how it compares with the "market price". Edit: Care…

insulin is dirt cheap to make

Re: Illinois governor signs law capping insulin costs at $100 per month

#29

Post by lightbyte »

jerf wrote: post #14
save_ferris wrote: post #5

Earlier quoted context omitted.

How will people lose their insulin over this?

If you can only charge $100, but it costs $110, what happens isn't that it gets sold at $100 anyhow. What happens is that it doesn't get sold. Nobody has an obligation to manufacture insulin. I'm not saying the costs are $110. I don't know. I'm just explaining why this can result in lost insulin.

That's not really a relevant argument here as insulin costs <$5 to manufacture.

Re: Illinois governor signs law capping insulin costs at $100 per month

#30

Post by aplummer »

toomuchtodo wrote: post #22
slowhand09 wrote: post #13

Earlier quoted context omitted.

So the next step is to nationalize the facility that manufactures it, the testing of it, the distribution of it. All taxpayers will pay for it. And the ubiquitous govt will have to compensate the drug companies for the taking of their intellectual property. Welcome to Venezuela.

Insulin is a generic. No one is required to be compensated. Pharma had their chance to be reasonable. That time has passed. Not to say that we shouldn’t appropriate intellectual property when necessary (eminent domain or not respecting a patent, as has happened in India and Canada), it’s just not necessary in this case. That doesn’t make us Venezuela, that makes us pragmatic.

The inventor gave the patent away for $1 because it would have been unethical to profit from it. That’s still true.
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