Drug and technology costs are rising, as are aggregated health care costs. Additionally, more people have no financing for their health care needs and inequities in the system seem to be growing. Maintenance, other priorities and inelasticity in the health care financing system may limit the dollars available to pay for progress in medical genetics. Cognitive, non-procedure oriented health services are poorly reimbursed. Genetic counseling does not have a dedicated reimbursement code and is often not billed for at all.
Clinical testing has historically small profit margins.
In a good year, health care delivery systems with budgets of hundreds of millions of dollars may eek out a five percent profit. With employers moving to cap their costs by defined contribution benefit plans and health insurers intensely competing to insure primarily healthy lives, the market for the new genetic medicine seems increasingly dependent on the spending habits of consumers. They will purchase tests that meet their needs and those they face in raising children. And they might buy hope through participation in clinical research. Creating a functional genetic medicine market place where consumer feel well cared for as they spend their money should be a priority of all businesses which hope to commercialize genetic biotechnology.