$8 versus $2000 per month (Another Prescription Rip-Off)
Ocasio-Cortez grills CEO of pharma company making billions on government-patented HIV drug
So big Pharma gets to right off all of their development costs for a new drug. This means we, as taxpayers, are subsidizing the development of this drug. I know that this is important to do because, otherwise, new drugs may not be developed as frequently.
So why does the American public pay such inflated prices? Lack of regulation? Inability for citizens of other countries to afford it? Insurance companies?
What if the actual costs (including a modest profit) were brought into line? Think about how it would affect insurance premiums (that is, if the insurance companies would ever readjust their rates to reflect the lower costs).
It is important to note, that many of the groundbreaking drugs approved see profitability within the first year due to such subsidies and inflated pricing.
This is another reason why government has to get involved in the healthcare system. The free market is just doing its job to properly protect consumers.