A Geek With Guns

Chronicling the depravities of the State.

Government Increasing the Cost of Medicine Again

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The only thing government is really good at is fucking over the citizens under its control. Take for example the health care industry. In the United States health care costs are through the roof and it’s thanks to government intervention. I’ve come across yet another example of government interference in the health care market causing an increase in costs:

But recently, KV Pharmaceutical of suburban St.Louis won government approval to exclusively sell the drug, known as Makena (Mah-KEE’-Nah). The March of Dimes and many obstetricians supported that because it means quality will be more consistent and it will be easier to get.

The result? Not surprisingly the cost of Makena went from $10.00 to $1,500.00. I know little about the drug but apparently it requires multiple injections (roughly 20 since the article says it will cost $30,000 with the new pricing scheme). That means the total cost will go from roughly $200.00 to $30,000.00 thanks to the government granting a monopoly on the medication to a single company.

Monopolies are not naturally occurring things. In almost every care of a monopoly cropping up it has been due to government regulations either outright granting the monopoly or putting restrictions on the market in such a way to grant a defacto monopoly (such as expensive Food and Drug Administration (FDA) trials keeping new companies out of the pharmaceuticals industry). Even though government claims they are needed to protect us from monopolies the reality is monopoly protection is yet another example of a government created problem that the government claims they didn’t make but are needed to fix.

Written by Christopher Burg

March 10th, 2011 at 1:00 pm