The Great American Drug Deal

Legislators and healthcare insurers are seeking ways to slash healthcare costs, often focusing on cutting the costs of medicines through schemes like price controls. Yet, drugs make up only about 13 percent of the money paid on healthcare. This book does a great job of explaining what is behind the pricing of new drugs but, more importantly,  shows that all life-saving drugs eventually become low-cost generics – truly a Great American Drug Deal.

This book scrutinizes all players in the healthcare industry and offers new ideas for cost-saving measures, such as closing loopholes, dealing with bad actors, and educating… show more.

What do we mean when we say “drug prices are too high” – and how can we fix them? In clear prose, Peter Kolchinsky, a successful biotech investor at RA Capital, clarifies the difference between list, net, and out-of-pocket drug costs, and explains how various parts of the system – drug companies, insurers, and pharmacy benefit managers (PBMs) – fit together to determine them. He also includes several detailed and timely suggestions for reform that would reduce the burden on patients and sustain biopharma innovation.