Why Prescription Drugs Cost So Much | Michael Rea | TEDxKC
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- เผยแพร่เมื่อ 1 ก.ย. 2016
- Would you be mad if you found out you were paying as much as 2000% more than your neighbor for a prescription?
Furious, Michael Rea left his job as a pharmacist eight years ago to pursue a solution to the runaway cost of prescription drugs.
Dr. Michael Rea founded Rx Savings Solutions in 2008 after routinely witnessing consumers struggling to pay for their medications. He noticed quickly at that time that consumers were paying much more than they needed to, which was attributable to a lack of information available to them. He set out on his mission to arm consumers with this information and add efficiency and transparency back into the world of pharmacy. Dr. Rea has been involved with research surrounding pharmacy transparency for over 10 years. He received his Doctor of Pharmacy degree from Creighton University.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx
This really didn't get much at why the costs of drugs were so high? I mean yeah it talked about the different cost variations on the same drug, but it didn't go in depth into why they are priced that way to begin with.
@Ethan_Witek It's not the fault of capitalism, it is just greed. to say that capitalism is also involved in that is preposterous. Is only the greedy people who are to be blamed, not the capitalist system itself.
I'll tell you exactly why it's high and exactly why putting a cap on it is bad. The average drug cost 2 billion to bring to market and some up to 5 billion. Of those that make it to preclinical trials 0.1% make it to human testing. Of those 1 out of 4 make it to the market. All that money spent on research and development and they can only recoup those losses in the few that make it. Government subsidies help a little but big pharma bear the brunt of it. Not only do they have to make up for losses but they have to make profit or they are out of buisness. They only have till the patent runs out to make those profits then competitors step in with generics and prices drop. If you spend 2 billion to make a drug, and dont count all the money you spent on drugs that never made it, for something that only 5,000 people need how much would you have to charge simply to break even? Do the math, it may surprise you. The less people that need a drug the more they have to charge to make up for the research and to make profits. Make sence?
They are allowed to charge whatever they want, and it's not fair or right to be able to do that to people.
@@avamartinez8586 so it's not fair when you put your car up for sale and get to pick the price? How about any other item that belongs to you? Who should be able to deside how much you can charge for you own property? Your argument is based in emotion and I would bet you haven't put much thought into it. The constitution Grant's everyone ownership of their labor and allows them to sell for as much as s ghey want. Drugs are just a product of labor.
@@Fadeinwow Interesting that you would mention PROPERTY. In the town I Iive in they're close to deciding to have rent control that will control what I charge my tenants. I am able to see both sides of this issue. Deciding people are to pay thousands of dollars a month for some medication is ridiculous. Many people have to get their meds from another country. I would bet my bottom dollar I have put a lot of thought into this; it isn't right or fair to suddenly raise the price of a drug from $3.00 to $3,000.00. Use common sense, put some thought into this!!!! Luckily at this time I take no meds, but I feel sorry for people being abused like this.
Your mission is an extremely noble one
This said nothing about why cost is high
Maybe not what you were expecting, but it certainly did. Essentially he's saying that the poor tools for discovering one's options leads to low competition, which leads to high costs for end users. Hope that helps.
Perhaps me means because consumers don't have better alternatives they're forced to pay outrageous costs.
You can thank the Pharmaceutical Benefit Managers for for these prices. Their profits have increased 1001% since 1987. They started out helping people, then realized they could get rich without doing anything at all. Just dom't pass along the discounts to the pharmacy and the customer. They keep the discounts and rebates and make their annual multi-million dollar salaries easier to achieve. Ask any Congressman.
Follow the money who make the drugs. Big Pharma is to blame! How much has the Big Pharma increased? Everyone that says its all the PBM's fault is speaking for Big Pharma bottom line.
MARTY ZAWORSKI incorrect and easy to show how you are incorrect. Big Pharma certainly has a role in high drug costs but the middlemen (pbms) who have control over both the top and bottom of the pricing model, have manipulated pricing to their financial windfall. There is a reason the the 3 biggest monopolies have become fortune 10 companies in such a short period of time for simply processing electronic paperwork.
@@m.scottnewman994 Which are these monopolies?
@@martyzaworski410 nope. You don’t get how it works. Big pharma needs to keep costs high so that the percentage rebates that gets kick backed to the PBMs are high. Otherwise they don’t get listed on the formularies for coverage.
My left ear enjoyed the beeping halfway through the talk.
A company on an incredible mission to change the lives of millions of Americans who face financial failure due to out of control medication prices. Keep an eye on this development in the coming years, lots of even more amazing things to come!
Hats off to you!!!
Insulin has gone from $60 a bottle to $325 in the U.S...
Daraprim gone from $13.50 to $750
moivaanmoi Daraprim is sold in developing world for 5 cents. Only if I could start a company that could sell it in Here for that price 15cents, but the government won't let me.
I have first hand experience with this and trust me it's not big pharma it's the hospital. If I go in with a script its cost a ton for 1 month. If I go in with no script is 25 bucks. Sometimes prices jump due to insurance and hospitals.
If consumers were informed they probably would skip most pharmaceuticals altogether.
How sad some people gave this a thumbs down.
Prices for products only drop significantly when the consumer actually deals with them.
You realize it is not as simple as that. The situation is a lot more complex. But a primary problem is the cartelization of drug companies, where companies collude to keep drug prices high. There is a massive anti trust case waiting to happen. There are as always, political forces which stop this from happening.
what is the name of the app?
Such a good work done and why does this video got only 700+ likes only in about 59k views?❔ ❓⁉️‼️
No mention of Recycled Oldies with new prices, or the brand new.
So let's see...he started a company to stave off the effect of drug price increase, how much money did he raise? how much value did the company receive? how much in revenues are projected? how much will his investors receive in their expected returns? Why should he make money off of this? Maybe all the value he receives should be given back to the patients he is helping? Of course, these rhetorical questions speak to the fact we live in a capitalist economy and that his innovation demands a return to him and his investors. Morally, could you argue he is making money off the same system that underserves patients? Yes. The same with pharma and biotech, innovation for new drugs must be rewarded or no one will invest. If drug development were easy, the government would be doing it. So would universities and other non-profits, but they don't because they largely cannot.
Yeah so this problem is quite complex. Do you think it's honestly possible for some people not to shafted with this model? Is there a middle ground to this problem where the companies can make their profits and patients/customers can either have enough disposable income to pay or the medication prices go down enough to make them affordable?
only problem is they don't innovate, the fda does a good job of presenting clinical trial data in an easy to understand format.
i've put together a good video about why meds are so unnecessarily expensive on my channel using the heart failure med "entrrresto".
these kind of posts are routinely deleted and zenzored, any truthful information exposing the matter is promptly removed from the internet, it's nothing but hooplah, gaslighting etc etc.
What's this app called?
Entire talk in 1-sentence: "Drugs are expensive, so I've developed a software that compares their costs"
How can I get this software??
Let's all join the fight. Hold Drug Companies accountable! If we do nothing, they will continue to charge higher prices.
In a nut shell, Drugs can cost a 100 dollars and if you go to Canada and buy the same drug, it costs 5 dollars.
What does that tell you?
7:46 They keep bringing up that health care is far less expensive in Europe. That's true. (Press Read more)
Everyone pays into the health care system in Europe. The price that one will pay really depends on how much one makes. It's considerably less as compared to the US.
The United States could copy that system and over night the price of health care would be considerably reduced.
The main reason why health care is considerably less in Europe is because, if the doctor makes a mistake, the patient will not receive the amount of money that one receives in the US.
It's a set amount. One receives something, but it's anywhere from 1/5 to 1/10 of the amount one receives in the US.
There are doctors in the US who have given up their practice because they could no longer afford malpractice insurance.
only 6000 views?
40,000 now
52k now
he’s a saint
Ah TedeX once again refusing to speak against anything always perpetuating the status quo....
When people celebrate greed this is bound to happen
*I pay $6.50 here in Australia for my drugs*
Is there any medicine to remove human microchip from inside the head
"ITS ALL BUSINESS" for them!
Thank god I live in Canada.If my meds weren't covered I'd pay 300 dollars for my monthly mental health meds and my son with schizophrenia his one shot is "1100"a month the other 2 he was on were an extra 400 dollars a month...instead of addressing his poor diet and providing funds for fresh meat fruits and vegetables or providing money for housing in a group home that would provide him with 3 healthy meals a day all of which would benefit and even curb phsycosis and improve the quality of his life...Anyways ...neither of us could afford our monthly meds if they were not covered.And for so many folks on Sooooo many meds ...meds to address sideffects of other meds...if someone was truelly invested in their patients health they d sit them down an say " you need to change your diet and move your body ....you need to cut back on drinking and smoking and fast food...you need to do these things for 3 months and then we ll revisit your health issues and look at prescriptions from there...and we ll carefully prescribe meds with full knowledge of their chemical effects ...both helping and holding people responsible for participating in their own health and wellness journey
What I think should happen is that patent laws should not be applied to the medical industry. Govt should be funding research and paying well to do so to attract brillian minds and then making drugs cheap affordable and easily available. I have incredible insurance coverage and I’m glad I do and I’m glad I did when my wife diagnosed with stage 4 glioblastoma the most I pay out of pocket is $20 but some poor old or young man or woman should never have to choose medication or housing.
Should look into biosimilars. It's a way around patents of biologic drugs.
@@kwhiskey1373 no it’s not. You can only make biosimilars for products off patent. They’re essentially generics for biological but they don’t circumvent patent protection.
Drug development is extremely expensive. There’s a high failure rate even after a drug enters human testing. The costs are about 1-2 billions dollars to get a new drug to market. There’s NO WAY you’re gonna get a company to take on that cost and risk without being incentivized with a period of patent protection.
They never tell you why other countries pay so much less for the same drugs
When money became more important than human lives. It was at that moment humans lost their way. And it's all downhill from there
i see me
He never answered the question!?
I need Lamictal to function. Since my employer made me change my insurance from Excellus BC/BS to MVP, my copay went from $5 to $70. I can't afford to pay that every month. I cannot take the generic equivalent. It has little efficacy for me. I blame the insurance companies. The decisions need to be out of their hands. We need to universalize healthcare. It can be subsidized. The revenue is there, it's just being wasted and/or stolen. It's time for a change in leadership.
SHOULDN'T ALEX AZURE HAVE AN ANSWERS BY NOW? ARE YOU A Pharmaceutical Benefit Manager?
My penicillin was 0.30
It should be illegal to jack up the cost of medications.
1. price gouging is illegal in a lot of other industries.
2. It’s becomes a form of racketeering when all the pharmaceuticals are doing it together.
3. It costs the government more in terms of Medicare and Medicaid.
4. Health care is a human right.
5. It’s the opposite of democracy.
6. other countries (UK, Germany, Canada, France, etc.) where medications don’t cost this much do a lot of the same R & D we do.
7. Science is suppose to be universal.
evil= greed
FDA regulations also add a lot to cost of drug production. Therefore, companies are forced to price drugs very highly.
Comes a point when u say fuckem and do what is best for u if u want to live. If I have to hav it a live ill take it by force if need be.
The Insurance Companys have to pay off the rip off middle man, the Pharmacy Benefits manager, and they pass the rest off to you the consumer? Happy about this?
To be clear this is only a problem in the USA and not a world problem.
Most countries the Meds are Very Cheap or after a certain amount 100% free like in Australia.
After you spend abotu $250 on meds the rest are free.
Here Box of 20-30 anti-biotics, pain killers, sleeping pills and so on all Cost only $6 per script.
And it dont matter if there is 20 tablets on script or 120 it cost the same $6
Or 1 box of Endone or 6 boxes Same price $6
The USA Gov shuold take 10 billion from defense budget and use it to pay for majority of medication costs and people in USA left only having to Pay $10/ script regardless of how many tablets.
He doesn’t really offer anything just sad stories
Didn’t answer the question literally in the title of his speech.
The huge deductibles on insurance plans since Obamacare passed are actually having an unintended good consequence. Patients are now acting more like consumers and making such choices as if they are shopping for flat panel TVs. Hospital companies are struggling to meet the downward pressure in prices as a result. They've never experienced people asking what an MRI will cost and how the clinic across town will do it for $100 less. They will adapt though and just like the computer and cell phone models, price will go down and quality will go up.
Middle mam
DID ANYONE CATCH ON TO THE HIDDEN SECRET STARTING @ 4:22 - 4:45...... LISTEN!!
The simple fact of the matter is, pharmaceutical companies excessively gouge for all their medicines at a ridiculous rate and they buy out the government so it doesn't interfere. We know this for a fact, because when governments *don't* play ball with them and actually fight for their citizens' health, we see a price drop in almost every drug by almost as much as 99% in most cases.
Things that cost in the hundreds and thousands in America and Canada? $5.00 in New Zealand and most of Europe.
While this guy's service no doubt finds the cheapest drugs around, it doesn't change the fact that almost every single one the drugs he was talking about in this talk is ridiculously overpriced anyways and *WE ARE ALL BEING GOUGED.* People are *DYING* for shareholder profits and our governments are being *BRIBED.*
Always shake my head when people say its profits. Profits on pharma are in the 15% range in good years. That means my $500 medication would only cost.....drum roll...$455.
My insurance doesn’t want to pay for my brand name meds, that keeps me alive since I was a young girl, n genetics of the same med doesn’t not work for me, so this October my live is in their hands, n we don’t have $4.000 a month to pay for my meds. 😡😡 my Dr, had try every single med in the market for the same condition without no success, she says they are struggling trying to make understand the insurance, that some patients can have genetic medication, they prefer the patient to end up in the ER n for them even better if the patient die! 🥵 but with my condition u don’t die at once some due, but rare, u die slowly, or turn into a vegetable either bz the meds d dope u, or bz ur brain it’s fry!!
N my husband it’s tire of me, bz my condition, but at longest I’m in my regular meds I’m functional able to do all the house chores n keep up with my kids, without my regular meds the rest I’m an encroachment in his life! I have to be perfect just like when he meet me!! 28 years ago, well we didn’t know it was going to get into a bumpy ride!! 🤬 so much for love, I live under conditional love! He is awesome to me, if every it’s fine with my health
My meds are $10,000 per month! That's ludicrous but it's a "specialty" drug. TIP: if anyone has access to a Costco - without being a member you can use their pharmacy for MUCH cheaper.
If objectivity is maintained then it is clear that drug discovery is inherently expensive and so costs are inherently high. It is also clear the US health system vs other countries is also inherently inefficient with various intermediaries taking a cut and adding to prices (not costs, these are different). This is true across the US healthcare sector, of which drugs is only a small part compared to hospitals, diagnostics, doctors salaries etc. These are the facts. The point of debate is more emotive and subjective -- should Apple be able to charge market rate for an iPhone but the Pharma companies not for life saving drugs? Should food companies charge market rates for life giving food? Or clean water? Or housing? Or education? Rhetorically, should everything "essential" not then be free? If so, who pays? Is this then communism or capitalism? So, let's separate objective fact from subjective opinion.
How much of the 30% unfilled prescriptions are for mental illness meds??
A terrible video: Sentimentalistic statement of a problem, as a prelude to an advertisement.
Smoke some weed is a real pain killer. Proweed
I cant imagine why this talk has so many views...you want to k ow the truth of American prescription drug prices
Watch my earlier post
CORPORATE GREED
homeboy had a good talk until he mentioned how he crusaded to help a mother put her kid on speed (adhd meds).
He didn't say which drug was prescribed. There are non-amphetamine alternatives used. Also, if the drug works and is used as directed, wouldn't it be unethical to not prescribe a known solution to a child who may end up failing to get into college or graduate high school because he can't pay attention?
I understand the USA is the leading prescriber of ADHD drugs to children, and that IS a problem. There are a majority of cases where the child is just being a child and needs some discipline, but instead are given drugs to fix the problem. But, for the children that truly need medication to focus (and that part is important), any and all medications should be considered to treat them IMO.
Most scams have birthplace in America or west
This guy is sales person for another scam
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