Hacker News new | ask | show | jobs
by horsecaptin 2877 days ago
Didn't Shkreli make Daraprim available for free to anyone who couldn't afford it?
1 comments

Such "patient assistance programs" are common, and they're designed to further maximize profits at the expense of heightened insurance premiums over time.
What? Giving away free drugs causes insurance premiums to rise? How does that work?
> What? Giving away free drugs causes insurance premiums to rise? How does that work?

So, as an example, I'm on Stelara. It's $10,000/shot.

Their patient assistance program will, without any consideration to income, pay up to $20,000/year of my copays/deductibles.

Why? Because the marginal cost to them of producing the shot is probably $10, so by paying (for example) someone's $4k deductible (or even $13k, if I'm a family on a Bronze plan) they make the remaining $36k that year off insurance. That person might picked a cheaper option or not have taken the shots at all if they'd had to pay the $4k out-of-pocket.

It feels awesome as a patient, but that's because I'm insulated from the enormous cost. Over time, though, it's pushing my premiums up, but in a way that's totally disconnected (from my perspective as the patient) to the pharma benefit I'm getting.

That’s different, that’s not free drug, that’s co-pay assistance.

Drug companies do give free drug and that doesn’t cause insurance premiums to go up.

The money has to be made somewhere.