If you are an insurance industry nerd, the TED talk from Amitabh Chandra on multi-million dollar cures should intrigue you. Some of my Duke Margolis colleagues are thinking through payment choices for these types of drugs and their thinking is still developing.
More interestingly and terrifying from an actuary’s perspective is this tweet:
1/ The possibility of using genetic prediction models to inform financial planning (esp purchases of life, disability, & long-term care insurance) poses a critical challenge if the models have substantial predictive value. https://t.co/p3yuFM242V
— Steve Joffe (@SteveJoffe) July 25, 2018
Insurance counts on the fact that group characteristics are knowable with reasonably small variance but characteristics of group members have wide variance. As member level variance shrinks, the insurance model is harder to implement.
I’ll be chewing on these thoughts until we enter the after Cyclon regeneration cycle news dump.
Multi-million dollar cures and better informationPost + Comments (20)