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THE CHALLENGE OF INCREASING PRICES
Chuck, an independent truck driver who had diabetes, had to make a tough choice when he was informed that his health insurance plan would no longer cover the brand of insulin, Humalog, that he had used for 17 years to control his type 1 diabetes. The change was precipitated by a spike in the price of Humalog-a 290 percent cost increase over ten years. As a result, Humalog was taken off the insurance company's formulary, causing Chuck's copayment for a 90-day supply of the drug to increase almost threefold, to $500. As he appealed the sudden and costly change in coverage, he decreased his dose of Humalog. Lacking the insulin he needed, Chuck became so sick that he had to go to the emergency room several times with dangerously high blood sugar levels. Being ill made it difficult for Chuck to continue driving, which lowered his income, making it even more difficult for him to buy insulin.
Discussion Questions
How do increases in drug costs affect patients?
Why does taking a drug off a formulary increase the prices to the consumer?
What should Chuck do?
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