Shari Rudavsky, has a story on the new state policy making it tougher for kids with insured parents to get vaccines from county health departments. The state – possibly at the direction of the feds – is instructing county departments of health not to provide vaccinations to kids whose parents have health insurance. The rationale isn’t that horrible – they don’t want subsidized medicine going to people who don’t need the subsidy. The effects are a little more complicated.
Due to the weird economics of the vaccination business, it’s not uncommon for a family physician to not maintain stocks of the necessary vaccinations. Even at somewhat elevated prices, it doesn’t make financial sense for these family physicians to maintain stocks and provide vaccinations at the reimbursement rates provided by insurers. So, they send their patients to the county departments of health where the vaccinations have traditionally been available at a lower price in any case.
My family has been insured, but not generally in a way where we get much benefit that defrays the costs of vaccination. Initially, we went to our pediatrician for vaccinations, but discovered the county health department was a lot cheaper for routine shots for the kids. So far as I know, we weren’t asked about our insurance status or ability to pay; they just had a price that we paid. If those vaccines were subsidized, I had no idea.
This new policy doesn’t consider whether the insurance you have mitigates the out-of-pocket expense for the vaccination. It just, apparently, requires county departments of health not to provide vaccinations to the insured.
I guess my main beef with this whole thing is the opaque pricing for vaccinations. How much does it cost to produce the medicine? Tack on a little bit more, and I’ll pay it. But, with pharmaceuticals, you have some unknown cost to recoup for its development, a little more to pay for development that didn’t pay off, a little more to pay for sale of the medicine in jurisdictions where the price can’t be jacked up, and a little more just because they can. The combination of the monopoly power inherent in intellectual property coupled with the dysfunctional medical market place is a toxic brew. Getting medicine reminds me a little of that scene in “Family Vacation” where the Griswolds need tires in the middle of nowhere near the Grand Canyon and they have the exchange, “how much do I owe you?” // “How much you got?”