tag:blogger.com,1999:blog-17501440.post116068791348995579..comments2023-08-20T07:26:25.416-04:00Comments on Walker Economics Blog: Rising Prices of Cancer DrugsMichael Arjonahttp://www.blogger.com/profile/06189327401592258439noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-17501440.post-1161131729974156262006-10-17T20:35:00.000-04:002006-10-17T20:35:00.000-04:00We actually debated the moral ethics behind chargi...We actually debated the moral ethics behind charging very high amounts for certain drugs which could potentially make a significant difference in recovery or survival in psychology today. Although I agree with Croom in the fact that a fixed amount would force customers to choose which drugs they want and settle for less expensive drugs sometimes, it is health we are talking about. People can not usually help the medical condition they are in (unless its like lung or liver cancer). Price ceilings and limits should be set by the government to stop the problem of rising medical drugs. It seems as if it the only way, considering the fact that it is life and death we are dealing with. <BR/>-veronicaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17501440.post-1161110768528500572006-10-17T14:46:00.000-04:002006-10-17T14:46:00.000-04:00i think the reason that prices have risen so much ...i think the reason that prices have risen so much and so quickly is because demand for cancer drugs is pretty close to perfectly inelastic. If you have cancer, you are going to buy the same amount of cancer treatment no matter how much the price goes up or down. If price goes down, people are not going to start stocking up on cancer treatments. By the same token even if prices increase, people will continue to buy the same exact amount of treatment. Also since, any drug that is less effective (even marginally so) will seem like a poor substitute when your life is at stake. The perceived lack of substitutes, contributes to the inelasticity of the cancer drug's demand.<BR/>-jacob hormesAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17501440.post-1161012426970348082006-10-16T11:27:00.000-04:002006-10-16T11:27:00.000-04:00If people have a family member with cancer, the pr...If people have a family member with cancer, the problem is, how far will you go to help get rid of the disease? Many people will do whatever it takes and will pay any price for a drug that may only help a little bit? To many, every little thing helps. It is harder for cancer patients who can't afford these expensive drugs. Insurance pays for the drugs but the co-payments are so high it is still too expensive. If this trend continues and the prices increase more and more, insurance companies are going to have to start denying people the funds for the drugs. Less people will be able to afford them, and the prices will have to be lowered. <BR/>-HopeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17501440.post-1160966692356436102006-10-15T22:44:00.000-04:002006-10-15T22:44:00.000-04:00If this trend continues, prices are going to becom...If this trend continues, prices are going to become so ridiculous that the producer will end up losing money and have to cut back on prices due to the outrageous co-pay. But I don't think that people should have to settle for the lesser drug especially when it comes to matters of life and death. In comparison to the cheaper drug, there should be a limit set so that the price of new drugs increases according to its effectiveness. <BR/>-Lauren HendersonAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17501440.post-1160707905417977962006-10-12T22:51:00.000-04:002006-10-12T22:51:00.000-04:00By the way, the first post was mine.-Jordan CroomBy the way, the first post was mine.<BR/>-Jordan CroomAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17501440.post-1160690227087185932006-10-12T17:57:00.000-04:002006-10-12T17:57:00.000-04:00It seems like the cause of this rising trend is th...It seems like the cause of this rising trend is the fact that, although the true price of the drugs are extremely high, consumers rarely have to pay even half of the cost because of their insurance. It's as if the market price of the drug is only the average cost to consumers, sort of like a price ceiling I guess. The demand for the drugs is at the point it would be at for a much lower price, and insurance companies just pay to make up for the difference. I think that the problem could be solved if insurance companies (like some already do) instead offered customers allowance-based coverage. Consumers could have a fixed amount to spend on approved medical expenses, and, after that point, would be forced to bear the entire cost themselves. This would force consumers to shop around and maybe settle for cheaper medicines in some cases. This reallocation of funds would in turn force the medicine producers to lower the price in response to the decreased demand. Allowing consumers to experience the burden of the entire price could probably resolve the issue.Anonymousnoreply@blogger.com