hi, everyone welcome to "on the money." i'm becky quick. the astounding price tag attached to one new life-saving drug is it the wave of the future or a prescription for failure for an entire industry rising risks the entire town that was moved to higher ground because of flooding who pays who wins and could it happen in other places this memorial day weekend, the special money issues some military families face and how they cope with them. hidden gems. we're not talking diamonds or pearls, but vacation destinations that could save you money, time, and more. "on the money" starts right now. >> announcer: this is "on the

money. your money your life. your future. now, becky quick we begin with drug prices. the costs keep rising, but a new medicine may become the most expensive drug in the world. one single dose could cost $2 million. as meg tirrell reports, the new medication could save lives and save money, even at that price million-dollar meds is this week's cover story. >> reporter: the debate over the price of drugs is about to take on a whole new dimension with the medicine just approved by the fda this week. it's for a rare and devastating childhood disease called spinal muscular atrophy, and its price, $2.1 million many on wall street argue it's a price that makes sense >> this new gene therapy drug which could cost $2 million or more, you know, is a life-saving therapy. these babies, these infants would be essentially nowhere in a year, and now they're growing up to possibly be normal children living a normal life. >> reporter: the drug is made by

swiss pharma giant novartis and is one of a new group of medicines that aims to dramatically improve, if not cure disease, with just one treatment. they're called gene therapies because they deliver copies of functional genes to make up for ones that cause disease. >> it would be transformative, first systemic gene therapy for a neurological illness. >> huge. >> really for any illness. >> reporter: there is only one in the u.s., luxterna, which costs a rare form of blindness it costs $850,000. though the price tags are large, gene therapies could be a bargain compared with medicines patients have to take chronically. >> the existing therapies could cost millions of dollars because they have to be paid and used every year for the rest of your life the total sum of those payments could dwarf the cost of the gene therapy. so, you could argue that although it's a one-time payment or a one-time price tag, that that's actually cheaper over the life of a patient. >> and again, it's a one-dose drug that aims to be a cure. over the next five years, five

to ten other new gene therapies could reach the market, but with the price of drugs already under scrutiny, the hefty price tags, of course, will only dial up that debate, becky. >> meg, this is amazing, the idea of having potential cures for some of these diseases the other therapies that are in the pipelines, what diseases do they cure? >> some of the nearest-term hopes are in disorders like hemophilia we're going to see some data very quickly in those gene therapies. others on the horizon, like sickle cell disease, beta thalacemia, so a lot of exciting things, still a little while before they hit the market. >> starting this summer, there's a new rule going into effect that says drug companies are going to have to advertise on television their list price for drugs. do you think that's going to be a cure for high prices >> for high prices it could be. some people say this is the shaming method, if companies have to present the list price, but other people say the list price isn't what peoplepay and it could actually scare patients off from seeking treatment if they think they're going to have to pay thousands of dollars a month. so, there's a hefty debate there, and it sounds like drug

companies are going to potentially fight against this rule. >> meg, thank you so much. >> thank you. >> meg tirrell joining us now is ron williams, the former chairman and ceo of aetna. his new book is called "learning to lead: the journey to leading your yourself, leading others and leading an organization. ron, great to see you. thank you for being here. >> thank you it's a pleasure to be here. >> let's talk first about what we were talking about with meg, this idea of drug prices getting out of control we've talked about this in the past what do you think works as someone who's been in the middle of this trying to solve it. >> i think we clearly need more transparency for patients so they understand the cost i think the proposal to have the pharmacy companies advertise the list price is a step in the right direction. i think, though, it has the potential to be confusing. what we really need is transparency for the patient who has insurance so they can go online, they can actually access their health plan, their benefits, and understand easily and quickly what they would pay for that medication.

that's true transparency that's meaningful to the patient. >> you tried to take on this fight yourself a lot of times, doing things like stopping the discounts that are given to other people along the pipeline. you ran into some pretty tough resistance when you did that. >> yeah. i think one of the big questions about what's called the rebates is that the rebates stop at different levels along the way for example, the employer often gets the rebates and uses it to subsidize the health plan and the premium the employee pays. then there are pharmacy benefit managers who also take part of the rebates as it relates to their fees and services. i think the answer is transparency, and i think the best solution to me is to push it all the way through to the consumer. >> the affordable care act's going to be ten years old next year the company seems stalled on which direction we go. what do you see happening when it comes to medical reform, health care reform >> well, i'm really worried. i think we're in the process of what i would refer to as kind of health care wars part two. and i think we ultimately have to get to bipartisan solutions, because the fact that one party

passes something, even though it's good for a huge percentage of the population, the aca really helped people who were on medicaid or were above the level of medicaid, basically, a medicaid expansion for the working poor we need solutions, not slogans and we're at the slogan stage. if we could ever get to the point of real bipartisan solutions, i think we'd stand a chance to make some progress. >> i think the problem with partisan solutions to this is one party puts it in effect, the next one that comes in and takes over rips it back out. so in the meantime, everybody in the insurance industry, the rest of the health care industry is left trying to figure out what happens next. >> well, i think so. and also, it exposes the patients to the executive branch decision-making. i mean, the regulations that the democrats make and then the regulations the republicans make and then the democrats and so, patients and health plans have great uncertainty. >> in your book, you talk about how your father was the manager of a parking lot and your mother was a manicurist and you write that big business wasn't talked about around the dinner table in your house

so, where did you begin your path towards the ceo >> you know, it's true so, many of the other ceos i talk to, their parents were attorneys, lawyers, geologists, lots of different professions. for me, it really all started with a desire to be better than where i was and what types of work i was doing in high school and out of high school, which is washing cars i really tried to get the exposure i went to community college. i went to a private university through college loans and paid for myself it really was entering the workforce where i really began to see other professionals and get a sense -- and quite honestly, one of the things that made a huge difference in my life was the establishment of black enterprise publication, because that brought a level of role model into my home where i could read about executives who were beginning to enter corporate america. >> did you have a mentor, an actual mentor, or were you doing it yourself by finding these publications and kind of ferreting out people that you saw as role models

>> at that stage, it really was self-mentoring, because the only african-american executives who worked in companies often worked in the human resources area or in community relations, and that was it there were no line-operating executives running companies, running divisions. so, i was really part of that first generation that got those opportunities. >> you know, you say before you can lead others, you have to lead yourself. what is self-leadership? >> self-leadership is really recognizing that you need to reframe where you start. if you're a woman and you're told you're not good in math or you can't be good in science, not accepting that and figuring out that you have the potential to do whatever you'd like to do. i would add that one of the things i learned in writing the book was that leading yourself, leading others, and leading organizations. when you lead organizations, turns out, the single most important thing is leading yourself effectively. >> it's excellent advice it's just a small bit of what's in the book called "learning to lead." ron, thank you it's a pleasure to see you and we hope to see you back here

again soon. >> thank you. >> ron williams. up next, we're "on the money. a small town and a big move. how an entire community made the move to higher ground and what it means for other flood-prone properties. and later this memorial day weekend, the unique financial challenges some military families are facing and how they deal with it right now, though, let's take a look at how the stock market ended the week.

♪ extreme flooding is surging in parts of the united states and more frequent extreme rainfall is partly to blame.

that in turn is making some neighborhoods uninhabitable. now the state of louisiana is using federal funds for a remarkable experiment, moving part of the town of new roads, louisiana, to higher ground. our diana olick has more on these rising risks >> reporter: at a small church meetinghouse in a small louisiana farm town, a small community is making a very big decision >> the option to purchase has been signed. it was signed today. >> reporter: the community, up to 40 homes, is moving together to higher ground the state of louisiana is using federal funds to purchase land, build new homes, demolish the old flood-damaged homes, and turn this neighborhood into wetlands so, you're going to knock down all of these houses, and these as well? >> right. >> reporter: pat forbes, who administers community development block grants for disaster relief, is in charge. >> it's quite clear that we're

having more disasters. and consequently, we have to start doing things that are smarter. one of the easiest, smartest things you can do is get people out of harm's way. >> reporter: pecan acres was built in the 1970s near a canal. but in the last decade, it has seen more frequent and intense flooding its levee is no longer adequate. back-to-back bloods in 2016 and 2017 drew the governor's attention, and a plan was hatched to buy out the homeowners and move them here, barely two miles away, but ten feet higher. kernell jackson was eager to hear the details she raised her children and now her granddaughter in the home that recently flooded beyond her financial ability to repair. so, the water came up to about here and then you had to take that drywall off >> yeah, yeah. losing everything. you don't have time to pick up anything and you've just got to go back and just start all over again. i mean, it's just miserable.

>> reporter: the program will buy out each homeowner, but since these damaged homes have so little value now, homeowners will also get forgivable loans, up to $200,000, to buy into the new community. for each year they live in their new home, they get one-fifth of the loan forgiven. in five years, the home is theirs, debt-free. the cost roughly $8 million in the past, the federal government has given flooded homeowners money to simply relocate, but this is one of the first plans to move an entire community en masse here to higher ground, and it could be a model for the future >> when we get done with this, we and everyone else will know more about how to do this and more about the mistakes to avoid than we know right now >> we're all in it together, and you know, i'm just not happy for myself, but i'm happy for everybody else, because we've been through a lot. >> reporter: and you're ready to

go. >> i'm ready to go. >> the state of louisiana is doing something similar closer to the coast on il dejon charles, which is sinking due to rising water another interesting aspect of this is by turning the old neighborhood into wetlands, it will protect nearby neighborhoods from flooding because it will act as a sponge for all that water, becky. >> do you think other states will follow suit if they see success in louisiana >> it's absolutely a model i mean, pat forbes told me when we were talking about it that he's already received phone calls from other states and municipalities look, everyone wants to live by the water, but that's an increasingly extreme and risky place to live right now, so other states will be looking into this as they have similar issues. >> diana, thank you. diana olick. up next, we're "on the money. military families make personal sacrifices to serve, but financial stress and debt can add up while they're deployed. money advice for those on active duty and later, planning a summer vacation but don't know where to go we'll help you find the perfect spot that won't break the bank the wifi that set the standard,

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>> reporter: like many military families, they are used to bouncing around. they've moved four times in the last 12 years, most recently to ft. meade in maryland, all while raising a family on a single military income. >> you're trying to provide for more than one person, and all of a sudden you have to furnish a house. you have new bills >> reporter: some of those bills have been costly >> when we came back from overseas, we had to rent a car for two months while we waited for our other car to get shipped, and that was a massive expense. >> reporter: nearly 11,000 active-duty service members and their families can shop here at the exchange at ft. meade. like many military families, they face some unique challenges when it comes to managing money -- long deployments, moving expenses, cost-of-living adjustments, and one of the biggest hurdles facing military families today, debt. >> all together? >> yes. >> reporter: eric and jana got into trouble when they started spending extra money they received from eric's deployment bonus while he was serving in afghanistan. >> and we got comfortable with it

so, when it ended, all of a sudden it's like taking a big pay cut. >> yes, absolutely. >> reporter: marine corps veteran and financial adviser rene brewer says low starting salaries and the structured world of military pay make it difficult for service members to dig themselves out of debt. >> once you get promoted, naturally, you get a pay raise but if you need to make up a $20,000 difference in a year, it's not like another service is going to knock on your door and say let me take you in and take you up three rungs >> reporter: today, most military families are more worried about money than going into battle. in a recent survey, service members and their spouses ranked financial stress as a greater concern than even deployment for military spouses, it was the number one worry with 49% saying it's their top concern >> it was a struggle we were moving things around trying to figure out, what do we pay now, what do we put off. >> reporter: but bruer says, like being a good soldier, it takes financial discipline to

turn it around. >> you really want to throttle back lifestyle, if it got out of control, get yourself back on the right path >> now it's your turn. >> reporter: that's exactly what the family did. >> we sat down and made a budget together and we stuck with it, and we didn't do anything fun because we figured it was less fun to be deeply in debt. >> reporter: a valuable lesson they're hoping to pass along to their children and share with other military families. now that they're on a budget and out of debt, they can set aside money each month for fun and like nearly half of military families who now rely on a side gig for supplemental income, jana has started dog-sitting to bring in extra money. >> you know, that is stunning. >> and she saves that money, too. >> that is fantastic but it's stunning to think that so many of these families are facing more concern about finances and debt than they are about even deployment. >> it's very stressful for the families, and you know, many of them are not aware that there are some breaks that they may be able to get or some benefits that are unique to them.

but like many families, trying to paste this all together in light of having one family member maybe not even in the same state, same city, same country as the rest of the family it's very difficult. >> thank you, sharon. >> sure. >> good to see you. up next "on the money," looking for a fun, affordable getaway? well, forget the overcrowded hotspots we uncover hidden gems

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year, according to aaa the most popular destinations, of course, will cost you a pretty penny, so what are some alternatives that won't break the bank joining us right now with some hidden gems is thaddeus hannscom of a vacation management company with destinations around the globe. thanks for being here today. >> good being here. >> let's talk about hidden gems. you found san diego is one of the most popular destinations of the summer. >> yes. >> so if you're looking for a cheaper alternative, what would you suggest? >> an hour north is san clemente, a laid-back, family-friendly beach town with fantastic eateries and local culture. it's only an hour away from san diego by train, so if you do want to check out seaworld, it's just a train ride away. >> what about seattle? that's another hotspot, but if you're interested in seattle but looking for something a little cheaper, what would you suggest? >> boise is an up-and-coming travel destination -- >> boise idaho >> boise idaho >> wow >> it's got the rocky mountains,

the boise river, a vibrant up-and-coming downtown, and because it's still being discovered, it's about 50% cheaper than seattle. >> 50% >> 50% cheaper. >> all right so that might actually draw a lot of people to check it out and see what they're missing. >> definitely worth checking out. >> let's say you want to travel south, but new orleans is a little too much for your budget. >> so, if you like great music and great food, savannah, georgia, would like a word with you. >> okay. >> it's consistently ranked as one of the friendliest cities in america, and unlike new orleans, it's got wonderfully mild summer temperatures >> that's a good thing to think about, too, not quite as humid, although georgia can get pretty humid. >> but savannah's an outlier, mild summers. >> what about if i want to go abroad, maybe mexico is there a town or city you'd recommend? >> a lot of folks dig the mega resorts in mexico, but if you want a taste of old mexico, think about tulum. it's got a wonderful mayan ruins. it has fantastic food and a

castle on a cliff overlooking the beach. >> wow in europe, where would you send people >> all roads lead to rome. it was a number one sort of city, most demand in the world, across all markets we're in over 250 markets. rome is number one on our list but what rome doesn't have is eight miles of velvet beach. so to get that, you want to head northeast to the adirondack coast to senegala. there's not a better place in the world to open a bottle of white wine, sit back and just watch your day disappear. >> how much is that? terms of the friess differential, if i was considering rome or somewhere else >> for a three-bedroom home, about 20% cheaper on average than rome. >> all right, good to hear one in three u.s. travelers these days say they're using vacation homes, up from one in ten? >> one in ten in 2010, that's right. >> so if i'm somebody thinking about putting my toe into that, trying it for the first time, what would you tell people in terms of what to make sure you're on the lookout for? >> sure. so, make sure you do your due

diligence. >> how >> if something feels sketchy -- well, google the address, do some online research. >> right. >> if something feels sketchy at any point, if you can't find a match for the home or someone's asking for your bank account information -- >> that always makes me nervous. we want you to wire us the money in advance. >> then maybe find a different home. >> okay. >> opt out. >> good to know. thaddeus, thank you for joining us great to see you. >> thanks, becky. >> that's the show for today i'm becky quick. thank you so much for joining us, too. next week, summer wines with warmer weather coming. we're going to sample some summer wines, no matter what your price point or whether you like red, white or rose. each week, keep it right here. we're "on the money. have a great one and we will see you next weekend

hey, there the guys are getting ready behind me for this friday night before the long weekend. here's what's coming up on the show tonight ♪ welcome to the jungle, we got fun and games ♪ cat getting scratched this month. the stock down more than 10%, and the chartmaster see something in the charts that can spell even more trouble ahead. plus, how low can the ten-year yield go? rates hitting their lowest level in almost two years. mike khouw will tell you how to profit from one name that will keep going up as they keep falling down and later -- >> there is no place