Posted by oldtanker on March 29, 2016 at 08:55:15 from (64.118.3.19):
In Reply to: sticker shock..wow posted by 88-1175 on March 28, 2016 at 16:51:55:
The argument by drug companies that they charge so much is because of research and development. Yet most of the cost for that are paid for with government grants. Yes they are given massive grants so that our politicians can claim with a straight face that they are not subsidizing the drug industry. Plus look at the cost of the same drug, sold by the same company in other countries. Why do they stick it to us and sell it in Europe of Canada for 1/2 or even less?
Look at the health care industry. Even non profit hospitals and charging outrageous rates and then so they show no profit building million plus dollar new facilities. The for profit companies are doing the same thing to avoid paying taxes. On that I know of is building a new 11 story hospital in a smaller city where they already own 3 or 4 other hospitals. Not because they need it but because they need to burn the profit up.
On the insurance side. It's been in the news. Bunch of start up companies that the federal government leant money to for start up so they could sell on the state and federal markets have already gone under to the tune of billions of tax payer dollars that the government can never hope to recover. Other major providers that offer multi line insurance have either stayed out of or drop out of the markets because they were losing money or couldn't pencil it out to start with. Prior to the affordable health care act the average company selling medical insurance made about a 5-6% profit on medical insurance. Yea there was one company making 16% and some others making about 8%. Now these same companies are saying they can't provide cost effective insurance and make a profit?
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