Two weeks ago we wrote a newspaper column about the incredible cost of medications for cancer and hepatitis C. We pointed out that the hepatitis drug Sovaldi (sofosbuvir) costs $1,000 per pill and has to be taken for at least 12 weeks. Keytruda (pembrolizumab) for melanoma could cost $150,000 a year.
We warned that the pharmaceutical industry was on the verge of bankrupting the health care system. Last night (Oct. 5) on 60 Minutes Leslie Stahl hosted a segment titled “The Cost of Cancer Drugs.” It confirmed that the price of cancer drugs has become astronomical and many patients can’t afford their co-pays.
The Financial Toxicity of Cancer Drugs
The situation is so out of hand that renowned oncologists have started labeling a side effect of these medications “financial toxicity.” That’s because the exorbitant prices are becoming a leading cause of personal bankruptcy for cancer patients.
Keep in mind that relatively few of the new medicines actually cure cancer. Many of the drugs that cost over $10,000 a month extend life only a little bit longer than older cancer medications.
What is a Fair Price for Gleevec?
The exception is a drug called Gleevec (imatinib). This medication was a real breakthrough for CML (chronic Myelogenous Leukemia). According to Dr. Hagop Kantarjian, chairman of the department of leukemia at MD Anderson in Houston, Gleevec “is probably the best drug we ever developed in cancer.” That’s because it truly extends life for an otherwise fatal disease. Many patients can achieve a normal lifespan but they need to take Gleevec daily.
According to 60 Minutes, the company that makes the drug has reaped sales of over $35 billion. They have more than made back the cost of development. According to Dr. Kantarjian, the annual cost of this medicine has tripled in recent years, from $28,000 in 2001 to $92,000 in 2012. His conclusion about the manufacturers of such cancer drugs: “They are making prices unreasonable, unsustainable and in my opinion immoral.”
The Bankrupting of America
If this trend continues our health care system will grind to a standstill. That’s because Medicare, Medicaid, Veterans Affairs, insurance companies, hospitals and individuals will not be able to pay what the drug companies are charging for new breakthrough drugs. Remember, we all pay for Medicare, Medicaid and veterans health.
Should there ever be a real breakthrough for Alzheimer’s disease, cancer, ALS, MS or Parkinson’s disease, we can only imagine what the price will be. Can our society afford to pay $150,000 a year to help 4 million people with dementia regain their cognitive function? The hypothetical price tag would be $ 600,000,000,000 a year. That’s $600 billion and it doesn’t even include cancer drugs.
Take a moment to read our editorial column on this topic and then watch 60 Minutes. Are you outraged or do you think this is the way it should be? Should drug companies be rewarded for creating breakthroughs? How much is enough? Share your thoughts below.
