5 ms·
It could be because the government is not allowed to negotiate drug prices. (Medicare.) They pay whatever the drug companies ask. Or, maybe because most indivi
by JacobJans 11y ago
It could be because the government is not allowed to negotiate drug prices. (Medicare.) They pay whatever the drug companies ask.
Or, maybe because most individuals in the U.S. don't pay the full price. They pay a 'co-pay.' Insurance companies pay the rest. But, they can only make profit as a percentage of revenue. If they lower drug costs significantly, they significantly lower their potential profits. Why would they do that? From a shareholder's perspective, that's a very bad idea.
In the U.S. relatively few people really know how much a drug costs, so why would price be taken into consideration?
- replicatorblog 11y agoYour first statement isn't accurate. I used to work at a startup that dealt with Medicare. They have a process where they put contracts out to bid. In my companies case their allowable reimbursement declined by 90% in a single year. They have plenty of power to put screws to suppliers and use their power effectively.
- ascorbic 11y agoHow can they put out to bid when a drug is patented with only one supplier?
- JacobJans 11y ago> He has asked Congress to let Medicare officials negotiate prices with drug manufacturers — a practice explicitly forbidden by current law. http://www.nytimes.com/2015/04/28/us/obama-proposes-that-medicare-be-given-the-right-to-negotiate-the-cost-of-drugs.html?_r=1 http://www.nytimes.com/2015/04/28/us/obama-proposes-that-med...
- deleted 11y ago[deleted]