How Drug Prices Work | WSJ

This video explaining pharmaceutical prices is a microcosm of how healthcare prices are derived.

If you understand the non-transparent economic dysfunction presented in this video, you will understand why healthcare prices keep rising faster than our ability to pay for them.

Using Discounts off purposefully inflated list prices without disclosing the supply chain transactions to the end purchaser in advance, creates an anti-free market syndicate in which the consumer always loses.

The entire process mutes the information about value & quality normally transmitted by transparent prices in a free market. The result? Perpetual rising end-user prices due to pressure from supply chain participants for larger margins. And up and up it goes!

Robert Nelson – Publisher, Forum for Healthcare Freedom

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