The promise of free contraception remains out of reach for many people. The reason is buried in the fine print. 📝 abbyabrams
Performers participate in ACT FOR ABORTION in front of the Supreme Court of the United States on Jan. 22, 2022.Murray, the chair of the Senate’s Health, Education, Labor, and Pensions Committee, says she’s been “hyper vigilant” as states have sought to restrict access to reproductive health care.
That behavior makes economic sense, says Leila Agha, an assistant professor of economics at Dartmouth College and lead author of the paper. “The amount of investment in research and development for new pharmaceutical drugs seems to depend on how profitable those drugs are expected to be. And the profitability of the new drug is going to in turn depend on how many consumers they can expect to purchase it at what price,” she says.
James Chambers, a researcher at the Center for the Evaluation of Value and Risk in Health at Tufts Medical Center, says that insurers have no choice but to limit what drugs are covered. If they don’t, costs would be unmanageable—and those costs would be passed down to consumers. “Health plans have to behave in this way in some regard, because if it was simply a free market, the health system would just explode in terms of the cost of these therapies,” he says.
But insurance companies are often focused on more immediate costs, says Steve Lieberman, a health care policy expert at the USC-Brookings Schaeffer Initiative for Health Policy. Insurers have no guarantee a patient is going to stay on the same plan for years, so there’s little incentive for them to consider long-term savings or innovation in drugs that might help lower costs down the line. “Health plans’ interest is lowering the costs as much as they can for medically necessary drugs.
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