Question

Should a new, expensive ($250,000+ per year) cancer drug be covered by insurance or not? Who might argue for covering the drug? Who might argue against coverage? What effect would the usefulness of this drug have? What effect would the quantity of patients who potentially would use this drug have? What role could the economic analysis play?

Answer 1

A new expensive drug must be covered with insurance cuz even if the cost of the drug is high and people afford it out of their arms, without usage the insurance must be covered on the whole.

However, the patients who might be purchasing this drug night be in favour of coverage but the insurance companies might not be favouring towards coverage as this is a new drug and anything night happen which can incur huge losses on the whole. Until the success rate of the drug is out, the risk for the insurance companies keeps on increasing with the quantity of patients on the whole. The economic analysis Teja about the successfully, the previous drug success rates of that particular drug releasing company and the number of Insurance policies claimed on the whole. This can be a measure of the insurance credibility on the whole.