Posted by 15.46 Irish Time
11th December 2024
A big reason why prescription drugs cost more in the U.S. than other developed nations is that the U.S. subsidizes innovation, while Europe free-rides on us. Here’s how it works: most life-saving medicines wouldn’t be developed unless U.S payers reimburse to compensate for risk & cost of development. Yet once it’s already approved in the U.S., the company has an incentive to make it available in Europe at a low marginal cost, even though the fixed cost of initial development was high. That’s how Europe arbitrages the U.S. by accessing the same medicines at lower cost. The details actually matter.
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Jeremy Kauffman
@jeremykauffman
15.46 Irish Time
Luigi Mangione’s manifesto includes a superficially damning claim. However, it’s wrong. Want to understand why the US spends so much on healthcare to get such poor results? Read this thread to see the greatest (and most unknown) analysis of US healthcare ever done.
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