Re: The pharmaceutical industry and free markets

From: Johnny Marcos (johnny5_at_yahoo.com)
Date: 07/05/04 

Date: Mon, 05 Jul 2004 08:12:21 GMT

ruetheday@outgun.com (Rue The Day) wrote in
news:a44a8c58.0407041437.2f7dd483@posting.google.com:

About 700 years ago the ming dynasty in china discovered red yeast rice
helped to increase circulation and reduce ailments in its citizens - the
chinese have an average cholesterol level from between 80 - 100. 700
years later, much scientific study, many billions of dollars in research
and marketing the american public with an average 250 cholesterol level
gets cholesterol drugs - what the ***? I feel like I got cheated.

> I find it quite interesting that much of the news coverage I've seen
> recently regarding the cost of health care (in particular
> pharmaceutical costs), the re-importation of Canadian drugs into the
> US, etc. have centered around finding market solutions to the problem
> vs government solutions. In reality, there is almost nothing
> whatsoever about the pharmaceutical industry that could be described
> as a "free market".
>
> 1. Costs are artificially inflated by the regulatory requirements of
> the drug approval process.
>
> 2. Pharmaceutical firms reap monopoly rents due to patent law.
>
> 3. The actual consumer of the pharmaceuticals pays little of the price
> out of pocket. The price is generally paid by insurance companies
> which are themselves directly or indirectly subsidized by the
> government.
>