We conservatively find that the IRA’s policy to set prices at 9 years after market entry for select small molecule drugs will reduce their expected revenues in the U.S. market by 8.0%, which implies a reduction in R&D investment of almost 12.3%, or $232.1 billion over 20 years. Over the same time frame, we conclude that there will be 188 fewer small molecule treatments, including 79 fewer new small molecule drugs and 109 fewer post-approval indications for these drugs. We find that this forgone innovation is expected to lead to 116.0 million life years lost due to the missed opportunities to improve health.
Category: Cost of Healthcare
Annual Exams are Often a Complete Waste of Time and Money
There has long been a belief that preventive medical services save money. The theory holds that if Americans’ primary care physicians ordered more preventive medical screening services we would not only be healthier but the cost of the preventive care would be more than offset by the savings from more serious care avoided. In other words, the cost of a colonoscopy would be offset by not getting colon cancer. The only problem with the theory is that it is wrong.
Tuesday Links
- Under no-give, no-take, people who sign their organ donor cards get priority should they one day need an organ.
- Social spending as a percentage of GDP has increased in basically every country that we have data for over time.
- Is there a relationship between penis length and IQ? HT: Tyler
- Masturbation is healthy.
- Why are so many pedestrians getting killed? Are cell phones to blame? (NYT)
Some People Are Exceptional in Old Age… Others, Not So much
The risk of mental decline increases with age. Dementia and mental decline have been in the news lately largely because of the presidential election. President Biden will be 82 by the time the next president is sworn in, while former President Trump will be 78. By the time the next presidential term ends, they will be 86 and 82 respectively.