Healthcare

I’M REALLY WORRIED ABOUT WHAT’S

When manufacturers donate to these charities, they fund cost-sharing for all drugs for a given condition, not just their own. Using Medicare data from 2010 and 2017, Dafny and her coauthors estimated the share of sales that assistance would need to induce to make such broad donations profitable for the leading 1-2 manufacturers in each condition covered by a charity. They call this the “breakeven inducement percentage,” noting that “inducement” refers to use that would not occur in the absence of assistance, even if it is medically appropriate.

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