First result on Googling the normal cost of cancer treatments

> Newly approved cancer drugs cost an average of $10,000 per month, with some therapies topping $30,000 per month, according to ASCO, which discussed the costs of cancer care at a recent meeting. Just a decade ago, the average cost per month of new drugs was about $4,500.

It seems $4,000 is rather a small fee in comparison.

> Some people don't have $4000 so it's not a matter of deciding whether parting with that much money is worthwhile.

But then those people wouldn't be able to afford other treatments either.

The insurance market and the government providing medicaid loves these types of cures. An effective cure that costs a few thousand dollars is obviously worth the healthy cured people living to pay premiums for the rest of their healthy life. Much preferable to a costly patient needing many treatments in the tens of thousands of dollars in the insurance pool. The economics are much better than what the system currently bears.

That's a function of perverse incentives, rather than some sort of immutable truth. If there were stronger penalties for (e.g.) cartel-like pricing (e.g. TKIs), and more price transparency for the true costs of care (ibid), we might see less of this. Or if, say, the primary market for such drugs adopted a single-payer system where the payer negotiated on behalf of the patients, rather than on behalf of its shareholders.

Gleevec and Sprycel are the canonical examples of "competition makes the price go up" but if a single payer dominated the market and used this as leverage, it would be simple enough to just say "not at that price" and force manufacturers to play ball. The real problem is regulatory and legislative capture which prevents this from happening.

Agreed. Patent and insurance reform are crucial.