This is exactly it. They are charging that price because that price will be paid, and this maximizes their overall profit. In other similar situations this woul

This is exactly it. They are charging that price because that price will be paid, and this maximizes their overall profit. In other similar situations this would spur competition, which would ultimately drive down prices to a reasonable level. But in the healthcare industry competition is often prohibited or made very difficult by law. You can cite the patent system as an example of this, but another horrible one is the "certificate of need" laws, which should infuriate you.