As a Republican Senator, it is not a surprise that Judd Gregg is against the Obama administration’s health insurance reform efforts. However, he has introduced a less-publicized concern into the debate.

Like others in his party, he is worried about the bill’s impact on the deficit and negative effects on the solvency of Medicare. Gregg also believes that the legislation will result in lower quality of care, but for different reasons than other opponents.

One of Gregg’s primary concerns with the bill is that it has the potential to stifle innovation. According to him, fewer medical devices and drugs will be developed. Less capital will be invested into the system, because there are fewer opportunities for burgeoning profit.

While technological innovations in health care have helped extend our lifespan and are clearly important, not all changes are created equal. Some treatments and screenings have been proven extremely effective. Unfortunately, others have been shown to have relatively little impact on health outcomes–but a far larger impact on the bottom line.

There is a difference between the invention of a breakthrough medication, such as penicillin, and minor tweaks in the laboratory in order for pharmaceutical companies to retain their patents. Sometimes, drug companies will make small changes to the dosage mechanisms (such as gel caps instead of tablets) to avoid competition from cheaper generic drugs. Proponents of the bill believe that it will be more likely that the latter, so-called “innovations” will be stifled.

Gregg believes that the attempt at increasing access to affordable health insurance will result in somewhat of a price-controlled system, which reduces the motive for companies to innovate. While it is true that many important medical breakthroughs have occurred in the United States, those who disagree with him would point to the increasing number of breakthroughs coming from scientists out of Western Europe. Those nations have even more explicit price controls on prescription drugs and medical devices. Granted, multinational corporations may have been doing more research and development for the American market, and that could decrease significantly.

Moreover, the health insurance reform bill includes some increases in scientific funding. Over the years, many medical discoveries have been made in universities through federal grants, in addition to private laboratories. Gregg’s concerns may be premature.

Related posts:

1. This Week in Health Care Reform EasyToInsureME health insurance This Week in Health Care Reform EasyToInsureME health insurance JANUARY...
2. Health Insurance Exchange Reform Weekly EasyToInsureME Health Insurance Exchange Reform Weekly EasyToInsureME DECEMBER 23, 2009 This...
3. What Will Drug Companies Do Without Medical Insurance Reform? What Will Drug Companies Do Without Medical Insurance Reform? Major...

Related posts brought to you by Yet Another Related Posts Plugin.

Emotion tends to override facts when it comes to patents and patients’ concerns. Consider the fears stoked when India joined the World Trade Organization in 1995. Many feared drug prices could rise, access to medicines could be reduced and many Indian pharmaceutical companies could close down.

Fifteen years later, these fears have proved unfounded: Drugs in each category are available at multiple price points, accessibility is clearly independent of patents, and Indian companies have become multinationals and entering foreign markets worldwide.

When India reinstated patent protection via IPR (intellectual property rights) reforms, many feared this would lead to decreased access to medicine and delayed entry of generic medicines. Despite the lack of pharmaceutical patents in India for 35 years and some of the lowest prices for medicine in the world, access to medicine in India remained among the lowest in developing nations. In other words, patents have little to do with the ability to access medicines.

While many try to point fingers at drug patents and IPR protection, the lack of healthcare financing and particularly health insurance are the real culprit.  Limiting the types of innovations which receive patent protection, as India currently does, won’t improve the health of Indians.

Small innovations that build on existing knowledge are the true backbone and a specific strength of the pharma industry.  Yet, Indian laws prohibit certain types of pharmaceutical innovations from patent protection, thereby discouraging research. Indeed, this policy hurts Indian patients the most.

There are many meaningful benefits of continued research on existing medicines. For instance, drug formulations and delivery systems can be optimised for greater effectiveness in India’s hot, humid climate.  Paediatric formulations could be developed for babies suffering from diseases more often found in adults. It could also promote the development of treatment for diseases prevalent in India — tuberculosis, malaria, filariasis and other tropical diseases — where breakthroughs are unfortunately rare.

Innovation, research and patent protection are critical to introducing new drugs into the market. Innovations and effective drugs are inseparable, as diseases constantly mutate and many have inadequate treatments

Without patent protection, innovations decline, as R&D needs immense investments. Due to high, ever-increasing R&D costs, only two in 10 approved medicines earn more than the average cost of developing a new drug. Statistics are telling: a new drug discovery cost around 8 million in 1975, 8 million in 1987 and more than .3 billion in 2006.

The Prime Minister, Dr Manmohan Singh, has acknowledged the critical role of innovation at the 97th Indian Science Congress held in Thiruvananthapuram recently: “Our Government has declared 2010-20 as the ‘Decade of Innovations’. We need new solutions in many areas… in healthcare, in energy, in urban infrastructure, in water management, in transportation… The country must develop an Innovation Eco-system to stimulate innovations… And innovative solutions with potential must be nurtured and rapidly applied.”

As we take a look at drug patents on Intellectual Property Day, we must not forget the important role they play in keeping India and the world healthy.  With viruses that mutate constantly — HIV/AIDS, H1N1, and TB — incremental innovations are imperative to stay one step ahead in the war against disease. If all innovations are protected to expand treatment options, millions of patients in India and worldwide will benefit. At stake are not just patents, but the lives of millions.

Related posts:

1. Will Health Insurance Reform Reduce Innovation? Will Health Insurance Reform Reduce Innovation? As a Republican Senator,...
2. Product Patent Regime in India Product Patent Regime in India The major concern that the...
3. What Will Drug Companies Do Without Medical Insurance Reform? What Will Drug Companies Do Without Medical Insurance Reform? Major...

Related posts brought to you by Yet Another Related Posts Plugin.