You know, thinking about it, the only reason why drug companies can charge exorbitant amounts for cheaply-produced medications is with the connivance of insurers.
-
You know, thinking about it, the only reason why drug companies can charge exorbitant amounts for cheaply-produced medications is with the connivance of insurers.
If everyone had to pay the retail price, many people wouldn't be able to pay for those drugs at all - so, by the "law of supply and demand" that people keep going on about, the pharmaceutical producer would have to lower those prices to be able to sell the drug.
But insurance companies negotiate "discounts" for their members, so the actual sales remain high - and almost nobody is paying the retail price.
This is pretty clear collusion to defraud the consumer, on the one hand, and also to create incentives for people to buy insurance - which is pretty coercive.
It also vastly distorts the profitability of the companies in question, which misleads investors - so kind of securities fraud, if you look at it in the right light.
