In many countries, governments run and control healthcare systems. Because of this, they dictate what they will be pay/reimburse pharmaceutical companies for drugs. In many cases, they pay very little for these drugs, and in some cases, pharmaceutical companies lose money by participating in certain country’s healthcare systems. In the US, the free market drives drug prices Because of this, pharmaceutical companies tend to charge more for their drugs in the US vs. what they charge in other countries. Many drugs in the US are expensive, so there are increasing calls for the government to introduce price controls, i.e., the federal government would start dictating what they will pay or reimburse for drugs under Medicare. If this happens, drug companies revenues and profits in the US (where they make most of their money) will do down drastically, which could cause cutbacks, layoffs, and reduced innovation. How do you feel about this? Should the government tell pharmaceutical companies what they will pay/reimburse for Rx products, or should the free market reign? Or, should be a combination of both?
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