The other driver of high US drug prices is a lack of bargaining power. Other countries have centralized/universal health care organizations that can and do negotiate with pharma companies on price. The US has Medicare and Medicaid. Although they are not universal, they do comprise about 30% of drug sales in the US, which should give them plenty of bargaining power.
Legal (prescription and nonprescription) drug costs in the US are insanely high because a Bribed Congress passed fiat laws to mandate this as a "favor to their corporate bribers.
They passed a law making it a felony to import drugs from ANY other nation (including France, England, and Canada, whose safety laws are even more stringent than ours).
They ALSO passed a Medicare "Reform" Law which specifically PROHIBITS Medicare from negotiating drug, and Durable Medical Equipment costs. And which "Reform" law also prohibits Medicare from even LOOKING at any alternative cost basis (like, say, what other nations are paying).
This says that medicare is prohibited from bargaining for price in US.
Is this true?
So doctors can recommend pill A that's 100 times more expensive than pill B and tax payer will have to pay anyway. So pharmacies can just raise price very high.
Is this even true?
This seems to be a very strange system that's easily abused by one side.
Under free market, customers will pick cheaper drugs. Now, the pharmacy can raise price really high and the drugs get bought anyway. Of course the price of drugs go sky high.
Why would anyone do this?