What Kim Kardashian Can Teach Us About Drug Pricing – MedPage Today

What Kim Kardashian Can Teach Us About Drug Pricing – MedPage Today

Pharmaceutical pricing is an ongoing concern but in order to really understand what is at stake, consider instead the story of the theft of Kim Kardashian's $4, 000, 000 diamond ring when she attended Paris fashion week. This seems like a lot of money for a polished piece of rock. For $4, 000, 000 you could buy 40 Porsche 911 S cars, 4, 500 iPhone 10's, or 212, 00 tablets of acetaminophen. Absent from this story was Congress demanding gemologists and jewelers appear before them to justify the outrageous pricing. No one really cares about how much Kim Kardashian pays for her jewelry. When Mylan Pharmaceuticals charges $600 for an EpiPen, a device that will save a life, everyone is outraged. .

Why do we accept it is OK to pay $4, 000, 000 for a polished rock and not OK to pay $600 to save a human life? In The Wealth of Nations, Adam Smith embraces a market-driven society and asserts that the invisible hand creates the best result even when different individuals working within a market serve their own best interests. If we consider the pharmaceutical industry as a market, certain things must take place. Good markets give us all we need efficiently and at the best price. Does this take place? The number one cause of death in the U.S. is heart disease and yet the most profitable drug in the world, Humira, treats arthritis. .

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