I have an article up at the Washington Post‘s In Theory blog titled How we should pay for cures, according to economics.
Imagine a major medical breakthrough: a cure for Alzheimer’s. Imagine that cure not only would improve the cognitive abilities of the more than 5 million Americans living with Alzheimer’s but also would give these patients additional years of life. Imagine the economic impact of allowing these individuals to live at home, return to work and become productive members of society.
But what should be the price of a cure? Ideally, it should be based on the value that the drug gives to patients.
The whole article is available here.