Generics are not the competition that you think they are. Drug companies have been paying the makers of generic drugs to not bring generics to the market. Insu

Generics are not the competition that you think they are. Drug companies have been paying the makers of generic drugs to not bring generics to the market. Insurance companies don't have the incentives that you think they do. If prescription drugs in general become more expensive, they simply raise the price of insurance. And if they are limited to taking X% of the rate as administrative fees, then this means that revenue increases. If the market followed the Chicago model as you think it does, how does the price of insulin increase? Why are drug prices increasing faster than inflation? https://www.ftc.gov/news-events/topics/competition-enforcement/pay-delay https://www.ftc.gov/news-events/topics/competition-enforceme...