We know a person who held a high level position with Merck. She admitted privately to us that the pharmaceuticals charge such high prices in America because the government will pay those high prices. Even for many very old drugs that have been on the market for decades. They charge as much as they can get./----/ As a former Pharma Rep, I towed the company line about the costs of self-insurance, R&D and marketing. What opened my eyes was a friend whose cancer meds were $2,500 a month. I suggested he try Costco Rx. He did, and the cost dropped to $30 a month. Sadly, we lost him five years ago.
And if there is no generic alternative, they get a LOT.
She said drug research is costly but does not anywhere nearly explain the charges for most of the drugs produced.
Litigation is one big expense as drug companies can be involved for months or years in high profile multi-million dollar lawsuits/class action suits should a drug be accused of harming somebody. That jacks up their insurance and legal costs. And the personal injury lobby has been successful in eliminating caps on punitive damages.
And pharmaceutical companies spend billions of dollars in advertising to get people to ask for their most expensive drugs and get doctors to prescribe those drugs and that in turn escalates the cost of those drugs.
But mostly pharmaceuticals charge what they do because our government and insurance companies pay those charges.
Why do your prescription drugs cost so much? - Harvard Health
The cost of a prescription drug can be very high, and several factors contribute to this. What can consumers do to reduce their drug costs, and what changes need to be made to make medicatio...
But again back to the OP, I do think those receiving free government healthcare should have to work as much as they are reasonably able.
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