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	<title>Comments on: Single pricing &#8211; what do you think?</title>
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	<link>http://www.medrants.com/archives/2080</link>
	<description>Contemplating medicine and the health care system</description>
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		<title>By: hope</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4643</link>
		<dc:creator>hope</dc:creator>
		<pubDate>Fri, 24 Sep 2004 23:11:19 +0000</pubDate>
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		<description>An interesting variation on your general anti-regulation position.</description>
		<content:encoded><![CDATA[<p>An interesting variation on your general anti-regulation position.</p>
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		<title>By: swift</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4596</link>
		<dc:creator>swift</dc:creator>
		<pubDate>Sat, 11 Sep 2004 18:32:28 +0000</pubDate>
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		<description>Perhaps owing to lack of clarity in rcentor&#039;s description, I detect some misunderstandings about his proposal. If I read you correctly, your single pricing proposal is NOT a call for bureaucratically fixed pricing (which would involve a process of evaluations and negotiations subject to lobbying efforts from drug companies or interest groups like AARP) but instead simply a requirement that drugs be sold at a single price to everyone. The drug companies could decide where to set that single price, but would be restricted from offering discounts to anyone (except, I would hope and expect, to participants in need-based give-away programs like most companies already have). The resulting pricing clarity would introduce competition because any pricing descrepancies between drugs in the same class or with similar functions would have to be justified in terms of measurably increased efficacy or more favorable side effect profiles.</description>
		<content:encoded><![CDATA[<p>Perhaps owing to lack of clarity in rcentor&#8217;s description, I detect some misunderstandings about his proposal. If I read you correctly, your single pricing proposal is NOT a call for bureaucratically fixed pricing (which would involve a process of evaluations and negotiations subject to lobbying efforts from drug companies or interest groups like AARP) but instead simply a requirement that drugs be sold at a single price to everyone. The drug companies could decide where to set that single price, but would be restricted from offering discounts to anyone (except, I would hope and expect, to participants in need-based give-away programs like most companies already have). The resulting pricing clarity would introduce competition because any pricing descrepancies between drugs in the same class or with similar functions would have to be justified in terms of measurably increased efficacy or more favorable side effect profiles.</p>
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		<title>By: John Anderson</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4594</link>
		<dc:creator>John Anderson</dc:creator>
		<pubDate>Sat, 11 Sep 2004 03:11:55 +0000</pubDate>
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		<description>The difference to the consumer would, I think, be minimal - at least in urban/suburban areas. I suspect Stop-and-Shop supermarket in-store pharmacy gets roughly the same discounted price as Brooks Pharmacies, yet the price difference to me is about ten percent at these two outlets - with S+S being the cheaper(??). Other factors heavily influence cost-to-consumer.
 
As of the moment, despite higher price, I use a drugstore [Walgreen] chain for my &#039;scrips - not for any real reason, just seems more comfortable. 
 
This may change, though, as an online supplier [NOT a &quot;re-import&quot; house] charges roughly forty per cent less than the brick-and-mortar. For ten percent I would not change, the convenience and turn-around time at the local facilities would keep me there. But FORTY? Roughly $110/month, or eight percent of monthly income? 
 
And again, I suspect the difference is largely in overhead other than price-from-manufacturer. Heck, go to any for-profit hospital and look at what they charge for aspirin or Tylenol vs the local drugstore: the difference can be amazing, and it is not because the hospital pays more than the drugstore. 
 
I am a bit leery of on-line, as the local pharmacist also acts as a sort of synthesist checking that prescriptions from different doctors unaware of each other&#039;s scrips have not inadvertently interfered with each other.</description>
		<content:encoded><![CDATA[<p>The difference to the consumer would, I think, be minimal &#8211; at least in urban/suburban areas. I suspect Stop-and-Shop supermarket in-store pharmacy gets roughly the same discounted price as Brooks Pharmacies, yet the price difference to me is about ten percent at these two outlets &#8211; with S+S being the cheaper(??). Other factors heavily influence cost-to-consumer.</p>
<p>As of the moment, despite higher price, I use a drugstore [Walgreen] chain for my &#8217;scrips &#8211; not for any real reason, just seems more comfortable. </p>
<p>This may change, though, as an online supplier [NOT a "re-import" house] charges roughly forty per cent less than the brick-and-mortar. For ten percent I would not change, the convenience and turn-around time at the local facilities would keep me there. But FORTY? Roughly $110/month, or eight percent of monthly income? </p>
<p>And again, I suspect the difference is largely in overhead other than price-from-manufacturer. Heck, go to any for-profit hospital and look at what they charge for aspirin or Tylenol vs the local drugstore: the difference can be amazing, and it is not because the hospital pays more than the drugstore. </p>
<p>I am a bit leery of on-line, as the local pharmacist also acts as a sort of synthesist checking that prescriptions from different doctors unaware of each other&#8217;s scrips have not inadvertently interfered with each other.</p>
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		<title>By: Sam</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4593</link>
		<dc:creator>Sam</dc:creator>
		<pubDate>Fri, 10 Sep 2004 22:52:44 +0000</pubDate>
		<guid isPermaLink="false">http://medrants.com/archives/2004/09/10/single-pricing-what-do-you-think/#comment-4593</guid>
		<description>My understanding is that the usual result of a regulation forcing a standard price on a product that started with a variety of prices is that everyone ends up paying a price near the high end of the original range.  This has been observed with gasoline prices, for example.  I&#039;m not an economics expert and I have not spend any time trying to think through the specific conditions of pharmeceuticals.</description>
		<content:encoded><![CDATA[<p>My understanding is that the usual result of a regulation forcing a standard price on a product that started with a variety of prices is that everyone ends up paying a price near the high end of the original range.  This has been observed with gasoline prices, for example.  I&#8217;m not an economics expert and I have not spend any time trying to think through the specific conditions of pharmeceuticals.</p>
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		<title>By: Fakeo Nameo</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4591</link>
		<dc:creator>Fakeo Nameo</dc:creator>
		<pubDate>Fri, 10 Sep 2004 18:37:02 +0000</pubDate>
		<guid isPermaLink="false">http://medrants.com/archives/2004/09/10/single-pricing-what-do-you-think/#comment-4591</guid>
		<description>Interesting question.  I think I would shop for prescription drugs the same way I shop for over the counter ones.  The effort I would spend would be proportional to the price and the severity of the illness.  

On a broader perspective, I was told by my marketing prof that people will buy goods or services based on perceived value.  How can Bayer sell aspirin for a higher cost than the generic?  It is EXACTLY the same chemical.  Well, it is in the perceived value of having that Bayer name.  It would probably work the same with non-OTC drugs.  Clever marketers can add some value to their me-too drug regardless of it&#039;s efficacy.  However, information on head to head comparisons would allow some of us to make better choices.  This would only really be worth it for expensive drugs.  And like choosing a Lexus over a Lincoln, based on the consumer reports stats, personal preferences would play a huge role.</description>
		<content:encoded><![CDATA[<p>Interesting question.  I think I would shop for prescription drugs the same way I shop for over the counter ones.  The effort I would spend would be proportional to the price and the severity of the illness.  </p>
<p>On a broader perspective, I was told by my marketing prof that people will buy goods or services based on perceived value.  How can Bayer sell aspirin for a higher cost than the generic?  It is EXACTLY the same chemical.  Well, it is in the perceived value of having that Bayer name.  It would probably work the same with non-OTC drugs.  Clever marketers can add some value to their me-too drug regardless of it&#8217;s efficacy.  However, information on head to head comparisons would allow some of us to make better choices.  This would only really be worth it for expensive drugs.  And like choosing a Lexus over a Lincoln, based on the consumer reports stats, personal preferences would play a huge role.</p>
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		<title>By: Daniel Newby</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4590</link>
		<dc:creator>Daniel Newby</dc:creator>
		<pubDate>Fri, 10 Sep 2004 17:41:37 +0000</pubDate>
		<guid isPermaLink="false">http://medrants.com/archives/2004/09/10/single-pricing-what-do-you-think/#comment-4590</guid>
		<description>The essential question: What structural incentives would single pricing create?

One answer: Much of pharma&#039;s institutional advertising might be redirected to influencing the few hundred honchos who have to sign off on the One Price. Ditto for the AARP&#039;s influence effort.

Another point: How would differential pricing for drugs in the same class be determined? (Derek Lowe recently mentioned that one of the me-too statins caused an entirely-unexpected improvement in CRP.) The safety/efficacy battle would become a political battle in D.C. Sounds like a bad idea to me. (The me-too drugs already have multiple purposes anyway. Absent price fixing collusion, they drive the cost down to what the market will bear. They also give another chance to people who cannot tolerate one drug.)

Re. DTC advertising: I&#039;m all for it. Otherwise it is difficult to get the word out on important new drugs. Take the non-sedating antihistamines. Without advertising, a lot of people would have continued to self-treat with the sedating kind, with major impact on quality of life, job and school performance, and safety while operating machinery. As another example, I bet a lot of people who have given up on their diabetic neuropathy will give it another try once the Cymbalta advertising hits.

How big of a problem is it anway with the people who insist on some drug they have seen on TV? I understand it must be incredibly annoying for the poor doctor, but what is the actual economic cost? How many people would you have to &quot;treat&quot; by detoxifying them from advertising to prevent one adverse outcome?</description>
		<content:encoded><![CDATA[<p>The essential question: What structural incentives would single pricing create?</p>
<p>One answer: Much of pharma&#8217;s institutional advertising might be redirected to influencing the few hundred honchos who have to sign off on the One Price. Ditto for the AARP&#8217;s influence effort.</p>
<p>Another point: How would differential pricing for drugs in the same class be determined? (Derek Lowe recently mentioned that one of the me-too statins caused an entirely-unexpected improvement in CRP.) The safety/efficacy battle would become a political battle in D.C. Sounds like a bad idea to me. (The me-too drugs already have multiple purposes anyway. Absent price fixing collusion, they drive the cost down to what the market will bear. They also give another chance to people who cannot tolerate one drug.)</p>
<p>Re. DTC advertising: I&#8217;m all for it. Otherwise it is difficult to get the word out on important new drugs. Take the non-sedating antihistamines. Without advertising, a lot of people would have continued to self-treat with the sedating kind, with major impact on quality of life, job and school performance, and safety while operating machinery. As another example, I bet a lot of people who have given up on their diabetic neuropathy will give it another try once the Cymbalta advertising hits.</p>
<p>How big of a problem is it anway with the people who insist on some drug they have seen on TV? I understand it must be incredibly annoying for the poor doctor, but what is the actual economic cost? How many people would you have to &#8220;treat&#8221; by detoxifying them from advertising to prevent one adverse outcome?</p>
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		<title>By: Machi</title>
		<link>http://www.medrants.com/archives/2080/comment-page-1#comment-4588</link>
		<dc:creator>Machi</dc:creator>
		<pubDate>Fri, 10 Sep 2004 12:43:24 +0000</pubDate>
		<guid isPermaLink="false">http://medrants.com/archives/2004/09/10/single-pricing-what-do-you-think/#comment-4588</guid>
		<description>I think you have a good suggestion here, DB and it would likely help physicians. But it may not have a lot of influence on patients.  As you point out in a previous post, it takes quite an effort on your part to overcome the influence of DTC drug advertising on even intelligent consumers. 
Drugs are NOT your average consumer good and choosing them is a bit more complicated than choosing a shirt.</description>
		<content:encoded><![CDATA[<p>I think you have a good suggestion here, DB and it would likely help physicians. But it may not have a lot of influence on patients.  As you point out in a previous post, it takes quite an effort on your part to overcome the influence of DTC drug advertising on even intelligent consumers.<br />
Drugs are NOT your average consumer good and choosing them is a bit more complicated than choosing a shirt.</p>
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