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73. Who Pays for Multimillion-Dollar Miracle Cures?

Freakonomics, M.D.

CHAPTER

The Price of Novel Cure for Hemophilia

If you're a company that's got about a thousand employees, most likely you are self-insured. That means you're using your own money to pay for your particular employees' medical needs in any given year. With a thousand members of your plan, your annual budget is about $6 million. If one of them ends up developing a case of hemophilia, you're going to have to write a $3.5 million check. And that's more than 50% of your entire annual budget going to one patient. It does strike me that absent a solution to the problem,. The company doesn't have an incentive to give you a one-shot cure.

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