Post by Admin: Vedant Acharya on Sept 22, 2015 15:14:34 GMT
fortune.com/2015/09/21/turing-pharmaceuticals-drug-prices-daraprim/
"Prices are rising when basic rules of markets say they shouldn’t. Each step of progress costs more than the last; prices rise even when competitors appear, when the market size expands, when drugs work less well than hoped."
Who exactly is paying for these drugs? If the government/huge insurance companies are paying for the drugs without negotiation, its not surprising that pharma companies can charge such a high price. If individuals were pitching in a larger percentage of the cost, then the price should theoretically follow a more normal pattern. However, in our situation, the government has limited payments to hospitals/providers without placing a limit on pharma companies; therefore, pharma companies are going to continue to squeeze as much profit as they can, as in this situation.
"Prices are rising when basic rules of markets say they shouldn’t. Each step of progress costs more than the last; prices rise even when competitors appear, when the market size expands, when drugs work less well than hoped."
Who exactly is paying for these drugs? If the government/huge insurance companies are paying for the drugs without negotiation, its not surprising that pharma companies can charge such a high price. If individuals were pitching in a larger percentage of the cost, then the price should theoretically follow a more normal pattern. However, in our situation, the government has limited payments to hospitals/providers without placing a limit on pharma companies; therefore, pharma companies are going to continue to squeeze as much profit as they can, as in this situation.