Buying Prescription Drugs or Paying a Mortgage???

The New York Times contained a thought-provoking article entitled “Co-Pays Soaring for Drugs with High Prices.” Instead of the traditional $10, $20 or $30 prescription co-pay system, insurance companies have changed their structure to include a Tier 4 classification for certain prescriptions. The insurance companies are charging consumers “20 to 33 percent of the cost of certain high priced drugs.” Tier 4 drugs address very serious medical issues, including cancer, Hepatitis C, anemia, multiple sclerosis and rheumatoid arthritis. The trend started with Medicare and spread to the private insurance market as a tool to contain costs. While the majority of consumers may appreciate lower monthly insurance premiums and co-pays, this industry change has severely affected a limited portion of the population with potentially fatal health issues. For some, the payments structure change has increased prescription costs from $20 to “spend(ing) more for a drug than they pay for their mortgages.” Some of the population impacted by this change is on a fixed or low income, which makes this jump in prices more challenging to handle.

I understand insurance companies are passing on the cost of these premium drugs to increase their own profitability. However, this change is unethical. Some consumers may have to make a decision between what is best for their own personal health versus what can be realistically afforded. I believe this change goes against the mission of the insurance companies. While increasing profits is key in the private sector, it is also important to consider CSR. If the insurance companies considered CSR, would Tier 4 be structured as it is today?

http://www.nytimes.com/2008/04/14/us/14drug.html?em&ex=1208318400&en=04074b3f0144b543&ei=5070