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| Flat out, drug makers and medical research does not get a good return on their investments. Developing a new drug or procedure is super expensive, and then the insurers (including medicare/medicaid) beat down the price of the procedure. Then you end up with a really expensive development not getting a return.
Meanwhile, your insurers are still charging the insurers a premium that they can justify based on the cost of the procedures. They're in the business of managing your risk, and when it comes to health that's an expensive endeavor. So they pad their numbers to be covered without planning on beating the providers on cost on the backside. Middle man makes the scratch. | |
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Hedging mandated health care (Obamacare) cost
