[PLUG-TALK] Drug price kvetch

[wes]

On Mon, Sep 28, 2020 at 2:18 PM Rich Shepard <rshepard at appl-ecosys.com>
wrote:

> I have often wondered if the stated cost is deliberatly inflated so the
> insurer can use those for tax or investor purposes. I've wondered why the
> actual cost to the end consumer isn't presented without the manufacturer's
> suggested retail price and all the discounts the insurer generously
> provides.
>

I think these are likely part of the motivation for the scheme, but I think
they have better ways to dodge taxes and persuade investors. To me, the
bigger reason is that obfuscating the truth makes it easier to convince the
general public to accept it. They make it look a lot more complicated than
it is so that people like you and I just throw up our hands and accept
there is nothing we can do about it. They've carefully managed the
regulations on their own industry through lobbying and payoffs to ensure
they maintain their exclusive positions as the highest-profit-margin
business on the planet, while making it nearly impossible for any new
competitors to enter the market.

-wes