https://www.wsj.com/articles/trumps-diabetic-shock-11563838601
Bernie Sanders has been registering his outrage about the price of insulin, and the presidential candidate thinks government-run health care is the solution to high drug costs. But almost no one noticed last week a Trump Administration move that could make the diabetes treatment more affordable for more Americans. In any event the insulin story is more about perverse incentives than corporate greed.
The Trump Administration put out an IRS guidance last week for high-deductible health plans that are paired with a health-savings account. Millions of Americans, typically with modest health expenses, prefer these arrangements because they allow an individual or family to control more of their own money and decisions while insuring against a serious illness like cancer.
The previous guidance said such plans could only cover certain “preventive” services before the patient met the deductible—which can run several thousand dollars for a family. So folks have to shell out a pretty penny for treatments for chronic conditions like diabetes or asthma before insurance kicks in.
This makes little sense because a drug like insulin is preventive care. A diabetic who maintains his insulin regimen is much less likely to suffer awful and expensive complications like amputations or blindness. The same dynamic is true for keeping asthmatics in good supply of inhalers. This spending reduces costs over time, but insurers couldn’t offer the benefit on these plans because of a curiosity in government regulation.