According to a 2019 Gallup poll,
48% of Americans have a negative view of the American healthcare system compared
to just 38% of Americans who have a positive view. These views have been rather
steady since 2012. There’s little disagreement that the system is ill and something
should be done to heal it; however, there are plenty of disagreements about the
diagnosis of the illness and what kind of prescription is necessary. Jean-Manuel
Izaret believes the needed prescription is to change the pricing model that’s used
for pharmaceutical drugs. In his fifteen-minute Ted Talk presentation, he
explains how he believes that a new Netflix-style pricing model could make treatments
affordable for all over time.
Today, the American healthcare system
uses a price per patient pricing model. That is, the system looks at how many
patients are ‘ill enough’ today and need a pharmaceutical drug for treatment
now. Jean makes the argument that this type of model not only fails to treat a
large percentage of patients, but it’s also more expensive. Alternatively, he
recommends the Netflix Pricing Model. In this model, healthcare providers will
purchase pharmaceutical drugs through a subscription like Netflix. Doing so
will not only treat more patients before their illness becomes more severe, but
it will also save more money down the road.
Throughout his presentation, Jean
uses many graphs that help show the current pricing model as well as the new
model he’s proposing. Though I think the overall presentation was a little rushed
given the nitty gritty details that are involved with economic models such as
these, I still think Jean’s presentation was focused and engaging. Given the seriousness
of the subject matter his tone was mainly serious, but there was some comic
relief when he used the film industry as a comparison with how the current
healthcare system operates. Personally, I look forward to the possibility of Jean-Manuel
Izaret’s pricing model idea gathering some interest and being investigated
further.
