KEY TAKEAWAY: The announcement on Tuesday that Amazon, JPMorgan Chase and Berkshire Hathaway would be joining forces to create a health care company moved stock markets and prompted optimistic predictions of major reform in a notoriously complex industry, but technical expertise is not going to be enough to really disrupt a very complicated and bureaucratic industry. Continue reading
Americans on average spent $714, or 1.6% of their take-home pay, on out-of-pocket health care costs in 2016, according to a report from JPMorgan. That was up 3.6% from the year before and up 13.5% from 2013. The bank also found that the US spent 18% of gross domestic product on health care, up from 13% in 2000. Continue reading
“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.” Steve Jobs said this and right now pharma could use a lot of rebels. Continue reading
KEY TAKEAWAY: High drug prices are a problem, but the answer is not cutting DTC advertising from drug companies. Lower drug prices will only come with an integrated approach to health care. Continue reading
KEY TAKEAWAY: On Wednesday, Apple released the test version of a new product that lets users download their health records, store them safely and show them to a doctor, caregiver or friend. “We view the future as consumers owning their own health data,” Apple Chief Operating Officer Jeff Williams said in an interview with CNBC. Imagine, actually giving consumers what they want! Continue reading
KEY TAKEAWAY: Wells Fargo analysts, in a new report, discovered that the average sale, rebate and allowance (SRA) offered to payers has jumped from 28% to 41% since 2012. But even with the discount(s) list prices remain high. According to Memorial Sloan-Kettering’s Center for Health Policy and Outcomes, the average cost of new cancer drugs approved by the FDA in 2016 was $172,000. Continue reading
KEY TAKEAWAY: Total spending per person is now growing at faster rates than prior years, with 4.6% growth in 2016 compared to. 4.1% growth in 2015, which followed 2 years of sub-3% growth from 2012 to 2014. Spending growth in each year from 2012 to 2016 was almost entirely due to price increases. We saw particularly large increases in spending and price for administered drugs, emergency room (ER) visits, and surgical hospital admissions. (Source: The Health Care Cost Institute’s (HCCI) 2016 annual report on U.S. health care cost and utilization?