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The truth behind why Daraprim can cost whatever its CEO wants it to

Five reasons drug companies are getting away with charging a fortune for needed medications.

A greedy, cocksure CEO set off a nation of people tired of mysterious and unchecked drug pricing.

Have you ever suspected that drug manufacturers have been given complete license to charge whatever they want?

You wouldn't be wrong.


Since he got us talking about this, we have to thank Turing Pharmaceuticals CEO Martin Shkreli. He raised the price of the drug Daraprim from $13.50 to $750 per pill.

The justification for the cruel hike?

"It's a more appropriate price."

GIF from CNBC.

What does that even mean? How does a drug manufacturer decide what is an appropriate price?

Well, there are a lot of missed could-be checkpoints in the American health care system that give manufacturers utterly unfettered license to charge whatever they decide.

A quote from The Economist puts into sharp perspective just how ambiguous the process is: "One economist at a closed-door session of pricing experts at [the American Society of Clinical Oncology] dryly remarked that she could find no economic theory to explain how companies price their drugs."

As Jessica Wapner, a researcher and writer on biomedical issues, puts it in her blog: "Drugs cost what the market will bear. It's that simple. Drug prices are set at whatever the market will bear."

Here's why.

Price Gouge License #1: Pharmaceutical companies can advertise directly to Americans, unlike in many other countries.

Image by Pfizer.

In the 1980s, pharmaceutical companies were growing tired of doctors being the gatekeepers between patients and newly available drugs. The first commercial marketed to the general public was in 1986 for Seldane. The profits for Seldane soared beyond anything the marketing team had imagined, and other companies soon followed suit. And in 1997, the FDA further loosened its rules on television ads for prescription medicines, which truly opened the floodgates.

FUN FACT: The only two developed nations that allow this kind of "direct-to-consumer" drug advertising are the United States and New Zealand. It is specifically banned in other countries.

Price Gouge License #2: The pharmaceutical industry has a distinct lack of competition, and in fact is monopolistic by design.

Innovation needs to be rewarded, goes the reasoning. And that point is easy to see. Without some incentive, there are a lot of lifesaving and quality-of-life-changing drugs that would never have been invented.

The good old days. Image via March of Dimes.

But it also stands to reason that innovation can be rewarded at scale and for a finite time, not at ever-increasing margins forever and ever. That's just not sustainable, and it practically begs for some intervening agency to act. As drug companies look for more ways to expand their profits each year — 73% of Americans polled in 2015 already think drug prices are too high — something has to give. Profits can be had, and even attractive ones at that, without carte blanche for the kinds of excesses we're seeing:

"Gleevec, from Novartis, possibly the greatest cancer drug ever invented, cost $24,000 a year when it was introduced in 2001; now it costs $90,000 per year, a quadrupling in price." — "60 Minutes" via Forbes, 2014

FUN FACT: According to a Kaiser Foundation report in 2005, 10 pharmaceutical companies accounted for 60% of U.S. pharmaceutical sales in 2004. It's as if a cluster of multinational corporations have an unwritten understanding that they can just stay in their lanes and get while the getting's good.

Price Gouge License #3: The complicated insurance setup in America gives manufacturers an advantage versus a single-payer situation where prices can be negotiated.

Image via iStock.

Other countries with socialized, single-payer health care systems are able to negotiate prices with drugmakers. Since all the power is collectively concentrated in the one single-paying entity, it forces the drug companies to play nice — or at least act in good faith.

FUN FACT: In 2003, a new act meant to "modernize" Medicare and bring prescription coverage into the mix prohibited Medicare (the largest customer in the American drug industry) from being able to negotiate prices with drug companies.

Price Gouge License #4: There are complex, private pricing strategy sessions that don't get revealed to the public.

We all know what happens when the process of how the sausage gets made never sees the light of day. It can result in some pretty rotten stuff being channeled to consumers.

But Jessica Wapner sheds a little light on what factors come into play in these sessions:

  • How many patients are buying the drug
  • How many are likely to be insured privately or through the government, or are uninsured
  • Length of an average treatment course on the drug
  • How high the stakes are for what the drug treats (desperately needed or only mildly beneficial)
  • How many years the drug will have exclusivity in the market (meaning no generics)
  • Budgeting for patient assistance programs ("If you can't afford your medication, drug company X may be able to help")

That's right. Those drug assistance programs aren't a kindly, out-of-their-own pockets, benevolent gesture. The companies get their money for them — they just tack it on top of what they're already charging.

FUN FACT: There are special forecasting companies that help drug manufacturers evaluate the field and arrive at complex equations regarding prescription prices.

Price Gouge License #5: Many consumers are shielded from the reality of drug prices because of insurance.

That means they keep buying the drug even if their copays go up (making concessions in other parts of their budget as long as they can), which reinforces to the manufacturer that their pricing practices are working. People will just pay it. They will find a way. And though some can't or don't find a way — and sometimes wind up giving up lifesaving drugs out of financial defeat — the sheer numbers don't usually rise to the proportions needed to signal to drug companies that they've made a pricing error.

Because they're still making a profit.

The highest performers in the health technology category in 2015 were Pfizer, Merck, and Johnson & Johnson.

Image via Forbes with permission.

Is there any good news out of all of this?

Yes! Increased attention on drug prices during the last year is culminating in a lot of "we're not gonna take it" talk from politicians and the media. President Obama is attempting to get Medicare negotiation rights for the most expensive drugs.

And I'll say it again: We should thank Martin Shkreli for his severe overreach in pricing Daraprim because it refocused the nation on a huge problem we've all lived with for far too long. I doubt he's very popular with his industry brethren right now — they avoided pitchforks for a long time before he came along. And in response to the public's backlash and, I'm personally betting, pressure from within an industry anxious to avoid intervention, Shkreli did finally say he will reduce the cost.

The pharmaceutical industry is banking on being too difficult to figure out for the average Joe to fight back against. That's why it's important to share this and get people thinking.

The price of drugs, if left unchecked, will eventually debilitate us.

It doesn't have to be this way.

via James Breakwell/X

All parents have had similar convos with thier kiddos.

Raising kids is tough, but there's a lot of laughs along the way. Especially when actual conversations start, as kids begin trying to make sense out of the world around them, ask questions, and test mommy and daddy's resolve.

Back in 2018, comedy writer and children's book author James Breakwell, with four daughters who were all under the age of eight at the time, shared their hilarious conversations on X. From these tweets, it looks like comedy runs in the family. Here's a sampling of some Breakwell's funniest kid-inspired tweets.

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

While Breakwell's 7-year-old wasn't as heavily featured, when she was quoted, the sarcasm was palpable. Which makes sense, considering that kiddos begin understanding this mechanism around that age.

 


 


 


 


 


 


 


 


 


 


 


 


 

Kids really do say the darnedest things, and we love them for it. It one of the many, many ways then bring so much joy to the world. It almost makes up for the headaches and sleepless nights, doesn't it.

This article originally appeared seven years ago.

Community

30 cheap and delicious meals frugal people swear they never get sick of

"I could eat one every day of my life if I allowed it to happen."

Image via Canva

Frugal people share cheap meals they love.

Groceries are a major expense these days. And grocery prices are continuing to go up in 2025, according to the USDA. Still, making meals at home versus going out to eat is cheaper, and a big way to save money. But getting creative with low-cost ingredients can be a hang-up.

In an online community of frugal people, member samdaz712 posed the question to fellow savers: "What’s the cheapest meal you actually enjoy eating regularly?"

They continued, "We all have that one budget meal that somehow never gets old. For me, it’s rice, eggs, and frozen mixed veggies with soy sauce and chili flakes. Costs next to nothing, takes 10 minutes, and I actually look forward to it."

The post wrapped up with a call-out for others' favorite and frugal meals. "Curious what everyone else’s go-to cheap meals are not the I’ll suffer through this to save money kind, but the ones you genuinely like and would still eat even if you weren’t budgeting. Always looking for new ideas that don’t break the bank," they added.

Frugal people happily shared their cheap (and yummy) go-to meals. Here are 30 cheap meals that they never get sick of.

"PB&J sandwiches. I could eat one every day of my life if I allowed it to happen. If I'm feeling fancy, I'll make a PB, banana, and honey sandwich. Then I'll pan toast with a generous amount of butter on each side until the bread is golden brown and the PB starts to melt. It's so decadent yet so cheap." - Kom4K

"Fried egg sandwich." - Major9000

"Every week-ish we make pinto beans, smash em up into a refried situation, melt some cheese, spread them on toasted torta bread with avocado. Then use leftovers in your eggs the next day or make burritos for lunch. You can never go wrong with a pot of beans." - BoardNo1459

"A pot of pinto beans with a link of kielbasa sausage and corn bread...Absolute baller." - Bigram03

"'Hobo-potatoes,' diced potatoes, onions, salt and pepper, mixed up in a bag of foil with oil and left to cook in the coals of a camp fire. Goes great with any protein and has more potassium per serving than bananas." - BlaqueNight

"Pasta and butter. Sometimes with grated parmesan." - RuthlessLidia

"Quesadilla." - babe_ruthless3

"Toast." - FrauAmarylis

"Pan fried tofu slabs braised in a pan with chopped kimchi, green onion, kimchi liquid or rice vinegar, soy sauce, sesame oil, bit of water to make it saucy, a tsp of sugar seems to help it meld together. Takes 10-12 min. Served over short grain rice. Optional toppings, toasted sesame seeds, chopped cilantro, sliced green onion. Edit: this was from The NY Times food, from Sue Li for exact proportions." - LavaPoppyJax

"Costco’s $1.50 hot dog and drink." - StarWolf478

"Rice and eggs for me too. It can be enjoyed in so many ways! My favorite is a crispy egg that’s still yolky on sushi rice with seaweed, salt and sesame oil." - theyrejusttoys

"For me it's an egg foo young - type dish! Stir raw eggs into leftover cooked vegetables (and optional protein, like leftover chicken or whatever you have). Ladle the mixture into a hot pan with a little oil, and fry up into patties. Serve over rice, and top with a drizzle of some kind of Asian sauce and a little hot pepper. You can look up a recipe for Egg Foo Young sauce, but that's not necessary; it tastes great with almost any kind of Asian sauce, or simply soy sauce. The cooked patties last for days in the refrigerator and can be reheated. Bonus: This is a fantastic way to use up any small bits of leftover veggies or meat. And if I have wilted vegetables that are in danger of spoiling, I just chop them up and quickly sauté them together, and freeze them in small containers. Now I have lots of veggies ready to go to make delicious egg foo young." - TIL_eulenspiegel

"For me, it’s instant noodles with a soft-boiled egg, some greens, and a splash of sesame oil. Dirt cheap but feels like comfort food every time!" - Wajid-H-Wajid

"Baked potatoes. So cheap, so good." - killyergawds

"Over-night oats. Eat it every morning before work." - Non_Binary_Goddess

"Nachos for the win." - HappyBear4Ever

"Rice and lentils cooked together." - RichCoast7186

"Potatoes, baked beans, fried eggs. Potatoes, corned beef, fried eggs. Rice (Mexican, Spanish, or Asian), beans, fried eggs. Cottage cheese, bran, frozen blueberries, milk. Home made salsa or pico de gallo on anything. Ground beef, rice, tomato and whatever else I have around. Rotisserie chicken, use the carcass to make soup with rice. Use the chicken that you can get off with tortillas and verde/enchilada sauce. With rice and beans. My advice, get really good at cooking rice, beans, and potatoes. Make sure you have a good selection of spices. Throw whatever extra money you have at whatever meats you can." - himthatspeaks

"Sweet potato black bean burrito a la moosewood. The most basic version is just a sweet potato and a can of black beans (but much better with an upgrade of caramelized onions and some cumin)." - Upbeat-Poetry7672

"Sardines on toast with a over easy egg." - Gandi1200

"Green bean casserole! Takes 10mins and lasts me all week for dinner and lunch." - Kihakiru

"Pan fried Spam, sunny side up egg, over rice. Furikake seasoning to taste." - Cajunsalmon

"I don't make meals I don't enjoy eating, but these are easy, quick, healthy and yummy. 1/2 rice , 1/2 red lentils + cubed veggies (frozen or fresh) eventually crushed tomatoes or coconut milk. Baked savory oats : shredded veggies +oats and eventually eggs or cheese or tomato sauce. Dhal sooooooo delicious. Split pea soup." - sohereiamacrazyalien


Pop Culture

'Wicked' author says one line in 'The Wizard of Oz' inspired Elphaba and Glinda's backstory

Gregory Maguire says he "fell down to the ground" laughing when the idea hit him.

Public domain

The two witches in "The Wizard of Oz" clearly had a history together.

Have you ever watched a movie or read a book or listened to a piece of music and wondered, "How did they come up with that idea?" The creative process is so enigmatic even artists themselves don't always know where their ideas come from, so It's a treat when we get to hear the genesis of a brilliant idea straight from the horse's mouth. If you've watched "Wicked" and wondered where the idea for the friendship between Elphaba (the Wicked Witch) and Glinda (the Good Witch) came from, the author of the book has shared the precise moment it came to him.

The hit movie "Wicked" is based on the 20-year-old hit stage musical, which is based on the novel "Wicked: The Life and Times of the Wicked Witch of the West" written by Gregory Maguire. While the musical is a simplified version of the 1995 book, the basic storyline—the origin story of the two witches from "The Wizard of Oz"—lies at the heart of both. In an interview with BBC, Maguire explained how Elphaba and Glinda's friendship popped into his head.

 

Maguire was visiting Beatrix Potter's farm in Cumbria, England, and thinking about "The Wizard of Oz," which he had loved as a child and thought could be an interesting basis for a story about evil.

"I thought 'alright, what do we know about 'The Wizard of Oz' from our memories,'" he said. "We have the house falling on the witch. What do we know about that witch? All we know about that witch is that she has feet. So I began to think about Glinda and the Wicked Witch of the West…

 glinda, elphaba, wicked,  In "Wicked," the two Oz witches met as students at Shiz University.  Giphy GIF by Wicked 

"There is one scene in the 1939 film where Billie Burke [Glinda the Good Witch] comes down looking all pink and fluffy, and Margaret Hamilton [the Wicked Witch of the West] is all crawed and crabbed and she says something like, 'I might have known you'd be behind this, Glinda!' This was my memory, and I thought, now why is she using Glinda's first name? They have known each other. Maybe they've known each other for a long time. Maybe they went to college together. And I fell down onto the ground in the Lake District laughing at the thought that they had gone to college together."

In "Wicked," Glinda and the Wicked Witch, Elphaba, meet as students at Shiz University, a school of wizardry. They get placed as roommates, loathe each other at first, but eventually become best friends. The story grows a lot more complicated from there (and the novel goes darker than the stage play), but it's the character development of the two witches and their relationship with one another that force us to examine our ideas about good and evil.

  - YouTube  youtu.be  

 

Maguire also shared with the Denver Center for Performing Arts what had inspired him to use the "Wizard of Oz" characters in the first place.

"I was living in London in the early 1990’s during the start of the Gulf War. I was interested to see how my own blood temperature chilled at reading a headline in the usually cautious British newspaper, the Times of London: 'Sadaam Hussein: The New Hitler?' I caught myself ready to have a fully formed political opinion about the Gulf War and the necessity of action against Sadaam Hussein on the basis of how that headline made me feel. The use of the word Hitler – what a word! What it evokes! When a few months later several young schoolboys kidnapped and killed a toddler, the British press paid much attention to the nature of the crime. I became interested in the nature of evil, and whether one really could be born bad. I considered briefly writing a novel about Hitler but discarded the notion due to my general discomfort with the reality of those times. But when I realized that nobody had ever written about the second most evil character in our collective American subconscious, the Wicked Witch of the West, I thought I had experienced a small moment of inspiration. Everybody in America knows who the Wicked Witch of the West is, but nobody really knows anything about her. There is more to her than meets the eye."

 wizard of oz, wicked witch of the west The Wicked Witch of the West has a story of her own.  Giphy  

Authors and artists—and their ideas—help hold a mirror up to humanity for us to see and reflect on who we are, and "Wicked" is one of those stories that makes us take a hard look at what we're seeing in that mirror. Thanks, Gregory Maguire, for launching us on a collective journey that not only entertains but has the potential to change how we see one another.

This story originally appeared last year.

Walt Disney and Ray Bradbury.

The world’s greatest innovators think and behave differently from us mere mortals. They have a unique view of the world and are dedicated to their craft in ways that most would deem obsessive. But without that type of dedication, Steve Jobs could never have given us the Macintosh, Michael Jordan would never have been able to fly, and Michelangelo would have never painted the Sistine Chapel.

It’s hard for the average person to understand what makes a cultural innovator tick, which is why an interview with groundbreaking author Ray Bradbury on Walt Disney is so inspiring. It lifts the veil on what great artists see in one another that most of us can’t. Bradbury is the acclaimed author of classics such as Fahrenheit 451 and The Martian Chronicles, who was a friend of Disney and worked with his legendary company as a creative consultant.

What did Ray Bradbury think of Walt Disney?

In a 2004 interview, Bradbury explained where the incredibly ambitious and creative Disney got his drive and determination.


“If there’s any secret at all, it’s because Walt, like myself, is not an optimist but an optimal behaviorist. Which means that every day of your life, if you behave well, you begin to feel well,” Bradbury said. “So that’s not false, that’s real. You get your work done every day, and at the end of a week, a month, a year, you’ll turn around and say, hey, look what I did. So you feel good. That’s real optimism. Optimal behavior.”

“He could look back at the end of each year and see his behavior, and it made him want to go on. A lot of people are pessimists because they’ve never done anything,” Bradbury continued. “If you go to bed every night having not done anything, you’re going to wake up unhappy, aren’t you? So the answer to that is do something every day. Be busy, for God’s sake, be busy.”

 walt disney, disney world, mickey mouse, disney company, disney theme parks, A statue of Walt Disney and Mickey Mouse.via Paul Beattie/Flickr

What is a behavioral optimist?

Although “behavioral optimist” isn’t an official psychological term, it’s one that Bradbury often used to describe himself. “I’ve learned that by doing things, things get done. I’m not an optimist; I’m an optimal behaviorist. We ensure the future by doing it,” he said. “Optimists and pessimists are blind. But I’m not either. I’m an optimal behaviorist. In other words, I behave at the top of my lungs every day. There’s no guarantee, but you’re going to have a heck of a lot of fun. You’ll come to the end of your life with the secure knowledge that you tried everything.”

There are just two critical things in life, he said, “Being in love with your wife or husband and being in love with your work. And then everything’s fine.”

If you’ve always dreamed of living a life like Walt Disney, using your imagination to entertain and uplift humanity, you can start by looking at life in the same way. Big goals can often seem too lofty when we think about the finished product. Instead, take small, consistent steps every day towards achieving your goal. Writing a 300-page book may seem like too much work, but if you write a page a day, you’ll have a book before the end of the year. The key is to stay focused and consistent, just like Uncle Walt.

What an amazingly kind gesture.

Closed adoptions—meaning adoptions with no contact between the biological parents and adoptive families—offer privacy, protection and emotional closure. However, it can understandably still be incredibly difficult for biological mothers to instantly and drastically remove their biological child from their life, even if they know they are doing what's best.

This was the case for Alicia Mae Holloway’s biological mom. In a video shared to her TikTok account, the dancer and television personality shared that her adoptive mother, Evelyn, “saw how hard it was” for her birth mom to give Holloway up for adoption. So Evelyn came up with a kind gesture that Holloway dubbed “the sweetest thing.”

“She was like, ‘okay, I’ll make you a deal. Every six months, I’ll send you a picture of Alicia and a little update in a written card of how she’s doing.’”

Getting those biannual letters out wasn’t as simple as dropping them off in the mail either.

As Holloway explained, she had been conceived during an affair her birth mother—a white woman, married to a white man, with three white children—had with a Black man. Not only could Holloway’s birth mom not afford a fourth kid, she feared what her “racist” family might do upon seeing a biracial baby, and told everyone that it was a stillborn.

All this to say, Holloway’s birth mom didn’t want the letters arriving at her home, potentially risking anyone from her family seeing it. Evelyn would therefore need to send the letters to a friend’s house.

But sure enough, Evelyn kept good on that promise. For 17 years, Holloways' birth mom got to celebrate milestones in her daughter’s life. Meanwhile, Holloway had no idea this exchange was happening.

“I get chills when I think about how she was watching me grow up and I had no idea,” Holloway told Today. “She knew I was a dancer and that I was doing beauty pageants and that I was a good kid.”

Holloway added that just before her 18th birthday, she was made aware of her adoptive mom’s kind gesture. And they even went to meet Holloway’s birth mom, an event Holloway that noted was in many ways more emotional for her two moms than it was for her, recalling that both women “had a long, long, long embrace and were both bawling their eyes out.”

As for Holloway, she told Today that she feels no ill will towards her biological mom. Rather, she sees the decision as “an act of love," that set her up for a truly “amazing life.” At the end of their meeting, after the important questions pertaining to family health history and whatnot, all she had to say was “thank you.”

And from the looks of it, she is as happy as ever living life with her adopted parents, who honestly could pass for her biological parents any day.

It's interesting to think about how none of us know our full life story, how many things both bigs and small remain mysteries. But when we are lucky enough to discover hidden truths, we unlock yet another part of ourselves.

This article originally appeared last year.