Drug prices are similar to the points in “Whose Line is it Anyway?” - they’re made up. The price that is shown in the infographic (250$) is purely artificial, considering the drug maker gives a $62.50 rebate, meaning the actual cost to the drug maker is only $187.5. Image from Kaiser Health News shared under a CC license. Textual description What happens is, the company that makes the drug sets a price, let’s say 250$ (this is a “fake” price as you will see). Now, the drug is sold to a wholesaler for a certain price (237.50$ in the figure). The wholesaler then sells it to pharmacies for a profit (240$). Notice how the price dropped from 250 to 237.5? It’s because the 250 price is a lie. The actual price was always 237.50$ and 250$ was chosen to inflate the price and make it seem like the buyer is getting a great “deal”.
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