In the US, it takes anywhere from three to ten years for our FDA to approve a new drug. During this time, it takes millions of dollars of testing, paperwork and interaction with our federal government.<quoted text>
You are right that our doctors are paid more. We also pay more for operations and for our medicine. How do other countries address this problem?
"...many OECD countries use strong regulation to set prices that hospitals can charge for different services, and some of them even set budgets for how much hospitals can spend. The quality of care delivered in hospitals in these countries are comparable to that in the U.S., and universities are still able to attract the best students to medicine."
"It is difficult to untangle precisely why prices are higher in the U.S., but two things are apparent: U.S. physicians get higher incomes than in other countries and the U.S. uses more expensive diagnostic procedures. More generally, with so many different kinds of insurance, no one organization has a strong incentive to cut out wasteful practices and ensure that all Americans get value for the very high levels of expenditure incurred when they are sick."
I know you hate government regulation, but the countries that regulate healthcare costs and have single payer systems seem to get equivalent service for much less money.
If and when a new drug finally gets approved, the drug company has to recoup all that money they invested. This is why you read or watch on television reporters stating that it costs a company fifty cents to make a pill, but they charge eight dollars.
Many of the new drugs never make it to market because of the FDA. So how does a drug company recoup those losses? They increase the price of their drugs already in the US market.
So why are these drugs cheaper in other countries? Easy enough to figure out, we took the hit for all the testing and paperwork. In another country, they just simply put it out on the market.
Then there is the liability issue that drug manufacturers don't have to deal with in other countries. In our country, the manufacture has to include X amount of money for legal defense and liability.
So the reason our prescriptions cost what they do is because of the FDA, all the drugs not approved by the FDA, and the extensive testing and red tape that it takes to get a drug approved. This information was passed on to me by my cousin in Maryland. She's a research doctor up there.