The following article summarizes the original event which is listed below the summary.
Prescription drug market is broken
At our April forum, Professor Steven Schondelmeyer, a nationally recognized expert on drug pricing, conducted a master class in pharmaceutical economics. In a riveting, data-laden presentation, Schondelmeyer exposed the brokenness of the market for prescription drugs in the U.S. He presented convincing evidence that the market for pharmaceuticals is inefficient and vastly overpriced.
“A drug that one cannot afford is neither safe nor effective,” he said. “We’ve got to do better.”
Schondelmeyer’s basic premise is that prescription drugs are essential to health care and the health of all patients, and that while pharmaceutical companies have done a good job of producing and distributing drugs, they have also engaged in predatory pricing because of their monopolistic control. He asserts there is a lack of regulation and a lack of appropriate market behavior by the U.S. government, which is the largest purchaser of drugs in the world. It does not bargain with the drug companies but simply pays the prices established by them, Schondelmeyer said, because it is not allowed to do so by statute.
Health care is a major market force; it constitutes 18 percent of the U.S. economy. In that massive sector, for every health care premium dollar spent 22.1 cents go to prescription drugs. This is more than any other category including physician services, which gets 22 cents. The amount spent on prescription drugs is the highest single cost driver in the health care market.
Professor Schondelmeyer presented several examples to show that the massive growth in cost for prescription drugs far exceeds the growth in the consumer price index. For example, EpiPen prices increased 623 percent, from $101 to $730, in 11 years, and the price of Humulin, a form of insulin, increased 361 percent, from $187 to $864 per month, in eight years. Schondelmeyer gave several other examples which demonstrate conclusively that the prescription drug market is broken and in need of regulation and reform.
In one of his slides, he compared the excessive cost of various drugs to the cost of a car, a vacation, and a house—his point being that few of us can afford such costs and, eventually, this makes these things unobtainable by the average person.
Schondeleyer is on the faculty in the College of Pharmacy and holds the CMC Endowed Chair in Pharmaceutical Management and Economics. He has testified frequently at both the state and federal level, and was recently appointed by the Minnesota governor and attorney general to a task force that will address lowering and controlling drug prices.
His presentation was both dramatic and illuminating and he was warmly received by the UMRA members attending the forum.
—Bill Donohue, Program Committee chair and president elect
Drugs and their role in U.S. healthcare economics
Fri, August 23 2019, 4pm
West Wing Dining Room, Campus Club, Fourth Floor, Coffman Memorial Union
Stephen Schondelmeyer, Pharm.D., Ph.D., an expert in the practice of pharmaceutical care and its role in the healthcare system, will join us for UMRA’s April forum to talk about the pricing of drugs in the U.S. and his views on the current marketplace. Dr. Schondelmeyer has a unique and extensive background that spans 40 years and includes experience as a pharmacist, clinical practitioner, health services researcher, public policy analyst, administrator, and health and pharmaceutical economist.
A professor in the University of Minnesota College of Pharmacy, Dr. Schondelmeyer holds the CMC Endowed Chair in Pharmaceutical Management and Economics. He is head of the U’s Department of Pharmaceutical Care & Health Systems and also serves as director of the PRIME Institute, which focuses on pharmaceutical research related to management and economics.
His research projects have included prescription drug reimbursement under Medicaid, Medicare, and other programs; pharmaceutical prices and patents; and pharmaceutical competition.
As an expert on the cost, pricing, and utilization of pharmaceuticals, Dr. Schondelmeyer has testified for the University, state governments, and the federal government. He is a consultant to the University’s UPlan health benefit program and has been uniquely helpful to the University in setting up and pricing its drug benefit program. His work has allowed the University to be an active leader in this area.
Dr. Schondelmeyer is a much sought-after speaker and “star” academic on pharmaceuticals, their delivery and pricing. He is very data driven and will undoubtedly present the latest statistics and information. He is also a person of strong opinions who will let us know clearly and directly what he thinks. We are lucky to have him at the University and as a speaker.
—Bill Donohue, Program Committee chair and president-elect
Upcoming Events
We are fortunate to have UMRA member and former Minnesota Landscape Arboretum director Peter Moe to lead this approximately 3.7-mile hike at the Arboretum on Monday, May 6. Plan to have lunch together after the hike at the Eatery café inside the Oswald Visitor Center.
This session will continue the discussion begun in the May 8, 2023 session. See that article for details.
If you currently live in your own home or apartment, have you looked ahead to when you might want to consider a senior living option? Do you have any idea what those options might be? How much they cost? What they provide? UMRA’s May 14 workshop will provide an overview of the world of senior living and the basic information you need.
You’re invited to join the final Family History Interest Group meeting for 2023–24. This will be an opportunity to ask questions related to family history, share insights, talk about recent projects, and suggest topics for next year.
Stephanie Daily will lead the discussion of Fuzz: When Nature Breaks the Law by best-selling author Mary Roach when the UMRA Book Club meets via Zoom at 2 p.m. on Friday, May 17.
The May 20 hike will start at the Historic Lift Bridge in Stillwater and go along the river to the new bridge, cross over and then back on the Wisconsin side, a total of approximately 5 miles. Most of the route is paved. We will eat lunch after at Brian's Bar and Grill in Stillwater. Car pooling will be available.
Climatologist and meteorologist Mark Seeley joined the U of M faculty in 1978 and has been a weekly commentator on Minnesota Public Radio since 1992. We are honored to welcome him as our guest speaker for UMRA’s May Luncheon Forum and 2024 Annual Meeting. He is always entertaining and informative.
UMRA’s Fourth Friday Book Club welcomes back, for the second time, author Julie Schumacher, U of M Regents professor of creative writing and English, for a conversation about her novel The Shakespeare Requirement.
We are in for a treat on June 3! Lynn Anderson, will lead us on trails at two parks near her Monticello home. Bring a bag lunch and we will gather in Lynn's yard along the Mississippi River for eating and socializing after the hike.
Get out to the ballpark with fellow UMRA members for the annual U of M Day at Target Field as the Minnesota Twins take on the Oakland Athletics on June 14 at 7:10 p.m.
Please join us at 9:30 on June 17, 2024 for a walk around Lake Como in St. Paul before attending the UMRA Summer Social and Picnic starting at 11 at the Como Pavilion. A perfect opportunity to get in a walk before we gather to celebrate summer.
Picnic under the covered, open-air Como pavilion, gaze at the water, spy some birds, catch up with friends and former colleagues, and meet new members. We’ll have lunch with plenty of time for visiting and then compete in teams as we are challenged by our Quiz master(s)!
Healthy aging, mindfulness, fighting ageism, and more will be the focus of the third annual Age-Friendly University Day to be held on the U of M Twin Cities campus.