Tuesday, January 31, 2017

Price of prevention

An interesting take on how Vaccines once considered a poor business prospect has seen rising costs. The articles aligns with the cost conundrum in Healthcare, similar to the different cases of the Paying Till It Hurts series, focuses on how "Prevention is better than cure" has been capitalized. A simple example to understand the magnitude of increase in cost - over the last 3 decades, the co-pay involved for an individual until the age of 18 has risen from $100 to $2,200.

The article offers three perspectives -
  • Care Providers through the eyes of Dr. Lindsay Irvin
  • The society being represented by the Farris family
  • And the viewpoint of vaccines with Prevnar, pneumonococcal vaccine from Pfizer
Touching briefly on the first two perspectives, the increased costs of vaccines have made it difficult to both providers and the public. Many physicians have stopped administering immunizations due to losses incurred involving the expensive vaccines. This leads to a stress on the public, where vaccination is mandated for children entering schools, and families find it difficult to locate the few practitioners who still administer vaccines.

Finally the story of Prenvar gives an overview of the cost conundrum. Though components of the vaccine do not change, the price continue to rise through the years for no apparent reason. There are pointers which are offered as an explanation by pharmaceuticals organization which include the investment into the R&D, larger clinical trial requirement, requirement of approval of FDA and another federal committee - Advisory Committee on Immunization Practices, and reviews which paint, if not biased, an uneven positive economic benefits of the vaccine. Nonetheless the justification of high price does not justify the continued soaring cost.

A personal opinion, probably harsher that this case presents, I would say that the profit mongering pharmaceutical industry need to look beyond the cost vs. benefit proposition and see the effect on the both Care Providers and the public.

This opinion is vindicated partially by the follow-up article on the availability of Crucial Vaccines. From elimination of Smallpox and control of Polio to business case for vaccine entry into a particular shows the skewed trajectory of our progress. The article captures the hurdles presented by the US healthcare system for vaccine entry from other countries. 2010 - 2013 breakout of a particular strain of Meningitis with vaccine availability only outside the US, led to CDC and FDA to introspect its process. The expensive and at times politically challenged nature of drug approval has allowed to pharmaceutical industry to flourish outside the US.

It is time that the healthcare industry, not with respect to vaccine alone, realize the impending the financial stress on the society driven by the soaring costs of medicine.

7 comments:

  1. Great overview! This question may be politically sensitive, but I only ask it because it relates to my project proposal. Governments in some other countries negotiate the prices of treatments and preventions with drug companies. Do you see that as being a possible solution to tackling rising drug prices in the US? If not, what solutions might you suggest?

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  2. Assuming I read this correctly, are they inflating the prices on already tested and released vaccines to fund R&D and compliance trials for other Vaccines? Seems a little funny to increase prices of vaccines that they probably aren't even testing much anymore. Regardless, I agree with your analysis and there is probably no reason to raise the prices like they have, making a simple vaccination harder for everyone, poor or wealthy.

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  3. Well written Ben! I can relate to the points you made as I also researched on the same topic. At the end of my blog, I suggested few measures to counter this situation. I’m unsure if these measures are already implemented. Also, I think there is a strong need to decentralizing the monopoly/lobbying power of big pharmaceutical firms. Like mention in the article, other countries negotiate heavily to bring down the cost of vaccine/drug. The government can also exercise the power of policy making to bring down the cost of life-saving vaccines.

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    1. Yes, the government could certainly bring down the cost of life-saving vaccines, IF Pharma was not in their back pockets.

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  4. I liked how you composed the article into three major perspectives, complimenting your analysis of the article. Vaccines can be somewhat of a controversial subject, especially among parents, deciding whether or not to vaccinate them in the first place. I would think that vaccines would perform better especially among most new parents who want to protect their newborns from polio, rubella etc? If not, why not? The tone of the article seems to assert that all vaccines are not very profitable. Thoughts? What about vaccines for TB which are recommended by the CDC to work in almost all healthcare institutions?

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  5. Nicely done! We will learn about pharmacies, but maybe it's worth keeping this discussion alive here. Decentralizing the monopoly/lobbying power of the Pharma industry has to date been futile. You would think they would care about saving lives, but it is much more complicated than that. I'll try to share this with you shortly. Think NRA and ask the same question. Just one of many examples. But I digress...

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  6. Thank you so much for the site, I found a lot of useful information for us.

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