Been recently fascinated with learning more about health care, reading a lot of Ezra Klein and Jonathan Cohn, catching up on essays by the likes of Paul Krugman and Atul Gawande. And the best thing I’ve read so far is this wonkish-but-accessible interview with health care policy super-couple Uwe Reinhardt and Tsung-mei Cheng. The interview teases out a number of distinctive policy critiques and ideas that aren’t surfaced in most of the layperson-friendly health policy lit I’ve come across, like this point about the oft-derided drug company profiteers:
If you look at total drug company profits in a given year, of every retail dollar sale, drug companies who manufacture the stuff get 75 cents. And of that, they make 16, 15 percent profit. So if you multiply that out, we have about $220 billion in drug sales; that’s about, say, $25 billion in profits. Now, that is a lot; you can buy two Princetons for that. However, if you then divide $25 billion through $2.2 trillion in national health spending, you get 1.2 percent; that is, drug company profits are 1.2 percent of total national health spending.
This was from Frontline’s excellent “Sick Around the World” documentary, where they profiled the health care systems of five developed countries and compared them to the US system. See also: Frontline’s follow-up, “Sick Around America.” (Note: T.R. Reid, the correspondent on “Sick Around the World,” refused to participate in “Sick Around America” after he found that the producers shafted the option of single-payer health care in the final edit.)