Drugs in the United States can cost as much as 35 times more than the same
drug in Germany.

The Germans have developed a system of non-profit "insurance" companies
that help cover costs for citizens. New drugs that are introduced on the
market are now thoroughly tested and reviewed, and if they do not provide
more benefits than the old drug, the new price is not paid.

" Drug prices there are already lower than in the U.S. because sickness
funds 
negotiate<http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/themes/drug.html>
with
both physician groups and drug manufacturers to set costs of all treatments
across the board. In the U.S., Medicare isn't even
allowed<http://www.vox.com/2014/4/11/5601562/how-can-one-pill-cost-1000>
to
negotiate lower drug prices."

This is to counter big pharma introducing several new drugs on the market
that do nothing different to old drugs, but cost a lot more, forcing the
cost of treatment upwards.

"In a truly competitive market, both the prices and the inherent qualities
of the goods or services being traded are known to all parties ahead of any
trade," he wrote in the *Times'* Economix
blog<http://economix.blogs.nytimes.com/2013/12/12/health-care-prices-move-to-center-stage/>.
"By contrast, in the American healthcare market, both the price and the
quality of health care have been kept studiously hidden from patients."

http://www.theatlantic.com/health/archive/2014/05/why-medicine-is-cheaper-in-germany/371418/

Sounds like a good system.
ᐧ


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