5 ms·

While some will condemn this is runaway greed, this is a natural side-effect of a healthcare system turned over to the private market. Outcomes and/or public he

While some will condemn this is runaway greed, this is a natural side-effect of a healthcare system turned over to the private market. Outcomes and/or public health improvements are side-effects, if the happen great, but the motive will always be profit, regardless of how you get there (so long as it's legal).

Moshe_Silnorin 10y ago
This is a side effect of regulations which prevent the competition from selling chemicals that are very cheap to synthesize. Createing monopolies and then trying to fix the ills this causes with a government monopsony seems backwards.
- chongli 10y ago
  Regulations are, like many other forces, subject to forming equilibria. Too many, and you get EpiPen price gouging; not enough, and you get the melamine milk scandal[0]. I agree that creating monopolies and then fighting them with monopsonies is ridiculous, backwards, silly, and inefficient. But life is a coordination game[1], so too bad[2]! [0] https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal [1] https://en.wikipedia.org/wiki/Coordination_game https://en.wikipedia.org/wiki/Coordination_game [2] http://slatestarcodex.com/2014/07/30/meditations-on-moloch/ http://slatestarcodex.com/2014/07/30/meditations-on-moloch/
BurningFrog 10y ago
The US health care system is extremely regulated. Calling it "turned over to the private market" is either ignorant or dishonest.
refurb 10y ago
side-effect of a healthcare system turned over to the private market I would disagree entirely. Take a look at Medicare Part D. The gov't collects the premiums and sends the money to private companies to manage payments. It's one of the few gov't programs where the actual costs came in way lower than projected due to the competition among plans for patients. The market at work!
dmix 10y ago
There is very little competition by design in the US pharmaceutical market, so indeed, it contains many of the worst parts of private industry without the typical benefits of markets. Just like the recent issue of EpiPen pricing, people (including the next likely president) spread the myth it was the result of a lack of regulation even though a single competitor, and there were many who tried to compete, would have made such a large swing towards high pricing a near self-destructive act for any company: http://slatestarcodex.com/2016/08/29/reverse-voxsplaining-drugs-vs-chairs/ http://slatestarcodex.com/2016/08/29/reverse-voxsplaining-dr... The question is not whether or not the market is too free but whether or not to put the final bullet in one the last remaining freedoms of the pharmaceutical market at the costs of reduced R&D and fewer new drugs: http://www.ibtimes.com/should-government-control-price-prescription-drugs-2112771 http://www.ibtimes.com/should-government-control-price-presc...
geomark 10y ago
If only it was a market. The US healthcare system is anything but. If you've lived in a country where healthcare is more free market you would note the striking differences in cost, quality of care and accessibility. I lived in the US long term and now live in a so-called developing country where healthcare is much more free-market. Dramatic difference.

Moshe_Silnorin 10y ago

This is a side effect of regulations which prevent the competition from selling chemicals that are very cheap to synthesize. Createing monopolies and then trying to fix the ills this causes with a government monopsony seems backwards.

chongli 10y ago
Regulations are, like many other forces, subject to forming equilibria. Too many, and you get EpiPen price gouging; not enough, and you get the melamine milk scandal[0]. I agree that creating monopolies and then fighting them with monopsonies is ridiculous, backwards, silly, and inefficient. But life is a coordination game[1], so too bad[2]! [0] https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal [1] https://en.wikipedia.org/wiki/Coordination_game https://en.wikipedia.org/wiki/Coordination_game [2] http://slatestarcodex.com/2014/07/30/meditations-on-moloch/ http://slatestarcodex.com/2014/07/30/meditations-on-moloch/

BurningFrog 10y ago

The US health care system is extremely regulated. Calling it "turned over to the private market" is either ignorant or dishonest.

refurb 10y ago

side-effect of a healthcare system turned over to the private market I would disagree entirely. Take a look at Medicare Part D. The gov't collects the premiums and sends the money to private companies to manage payments. It's one of the few gov't programs where the actual costs came in way lower than projected due to the competition among plans for patients. The market at work!

dmix 10y ago

There is very little competition by design in the US pharmaceutical market, so indeed, it contains many of the worst parts of private industry without the typical benefits of markets. Just like the recent issue of EpiPen pricing, people (including the next likely president) spread the myth it was the result of a lack of regulation even though a single competitor, and there were many who tried to compete, would have made such a large swing towards high pricing a near self-destructive act for any company: http://slatestarcodex.com/2016/08/29/reverse-voxsplaining-drugs-vs-chairs/ http://slatestarcodex.com/2016/08/29/reverse-voxsplaining-dr... The question is not whether or not the market is too free but whether or not to put the final bullet in one the last remaining freedoms of the pharmaceutical market at the costs of reduced R&D and fewer new drugs: http://www.ibtimes.com/should-government-control-price-prescription-drugs-2112771 http://www.ibtimes.com/should-government-control-price-presc...

geomark 10y ago

If only it was a market. The US healthcare system is anything but. If you've lived in a country where healthcare is more free market you would note the striking differences in cost, quality of care and accessibility. I lived in the US long term and now live in a so-called developing country where healthcare is much more free-market. Dramatic difference.