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There are several reasons why US healthcare costs are higher than other countries, and there is certainly a lot of inefficiency that should be fixed. But one of the major reasons is that the US effectively subsidizes drug development for the rest of the world. US buyers generally have to pay full market rate, and then in other countries prices are fixed artificially low by government fiat. The US probably can't continue paying that subsidy forever, so eventually either other countries will have to pay more, or the US will also start fixing prices and thus research funds will dry up.


We're subsidizing marketing campaigns by paying market rates, not pharmaceutical development.




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