- Patients can only buy cancer medication from their healthcare providers, and expect it to be covered by health insurance.
- Healthcare providers will only buy cancer medication whose prices are low enough to be covered by insurance.
- Insurance scours the market for the lowest cost providers and states it will only cover that cost, no higher.
- If the cost of drugs goes up, insurance does not immediately renegotiate prices. Healthcare providers stop buying the drugs while waiting for low cost capacity to re-appear so they don't take a loss on the care.
- Drug companies go out of business because they can't sell their inventory, driving up prices further while reducing supply.
We really ought to have a government funded drug manufacturer...
- Healthcare providers will only buy cancer medication whose prices are low enough to be covered by insurance.
- Insurance scours the market for the lowest cost providers and states it will only cover that cost, no higher.
- If the cost of drugs goes up, insurance does not immediately renegotiate prices. Healthcare providers stop buying the drugs while waiting for low cost capacity to re-appear so they don't take a loss on the care.
- Drug companies go out of business because they can't sell their inventory, driving up prices further while reducing supply.
We really ought to have a government funded drug manufacturer...