Medicare + Medicaid has been prohibited from assisting negotiation of drug price between pharmacy + drug company for a few decades. That is set to change in the future id my understanding.
I have private health care insurance so my insurance company would try negotiate the price down.
I agree with other commenters saying basically, drug companies all around the world do R&D, are happy to sell drugs at cost in England or Somalia, but will aim to make money in US selling drugs with a healthy profit margin here.
> Medicare + Medicaid has been prohibited from assisting negotiation of drug price between pharmacy + drug company for a few decades. That is set to change in the future id my understanding
> so my insurance company would try negotiate the price down.
Do they have any incentives to do that though? If their profits are fixed at a specific % wouldn’t they be incentivized to spend as much as possible so that they could increase premiums (as long as all other companies play along)?
jackTheBuilder|1 year ago
I have private health care insurance so my insurance company would try negotiate the price down.
I agree with other commenters saying basically, drug companies all around the world do R&D, are happy to sell drugs at cost in England or Somalia, but will aim to make money in US selling drugs with a healthy profit margin here.
JumpCrisscross|1 year ago
It’s already started [1].
[1] https://www.cnn.com/2023/08/29/politics/medicare-drug-price-...
ywvcbk|1 year ago
Do they have any incentives to do that though? If their profits are fixed at a specific % wouldn’t they be incentivized to spend as much as possible so that they could increase premiums (as long as all other companies play along)?
ZeroGravitas|1 year ago
That seems like a wild claim to make, but since it's just reported as if that was normal rather than a shocking scandal, I guess it's probably true.