
Robin Feldman on Drugs, Money, and Secret Handshakes – EconTalk - p_roz
http://www.econtalk.org/robin-feldman-on-drugs-money-and-secret-handshakes/
======
p_roz
This episode discusses the incentive structure of insurance companies, drug
companies, and other middlemen driving up the price of drugs.

The patent system with respect to drugs is a mess. The proliferation of
secondary patents on established drugs has to be done away with. Drugs are
expensive not because they’re any better, but because of monopolies gained
through abuse of patents.

The 80/20 rule on insurance company profits also has a perverse effect. The
only way for insurance companies to earn bigger profits is by increasing
costs. If they try to save money for their customers, they would be forced to
earn less.

In my opinion, the system needs less tinkering by government and more control
by individuals over their own care.

~~~
clarkmoody
Excellent episode! It really highlights the nuanced nature of the industry as
it stands, with the incentive structure defined by employer-provided health
insurance, the patent system, and the "PBM" middlemen.

