Malpractice is a factor, to be sure, but it's far from the only one. I equally blame hospitals for gouging patients for anything they can get (and sometimes well beyond) and the drug companies.
I used to work in an independent pharmacy that got wiped out by Cardinal (the biggest national drug distributor). How they escape antitrust suits I'll never know, because it's pretty blatant; small pharmacies can't get near the same pricing that Walgreen's or CVS does and it puts them out of business by design.
Anyway... it galls me every time I hear some congressman whine about passing legislation to lower drug prices when THEIR OWN LEGISLATION was responsible for raising them in the first place! Any time a new drug is put on the market, CONGRESS gives them 7 years during which (1) generics cannot be legally manufactured and (2) they can charge whatever ridiculous price they want for it within U.S. borders. Ostensibly, this is to enable them to recoup the cost of research and development and getting through FDA red tape. This is why you can get Viagra for $10 a pill (or less) in New Zealand and it costs $80 here at Wal-Mart on a good day. It's why anyone who can afford the gas goes to Canada to stock up on their meds. These prices have gone far out of control for lack of limits.
Then there are the hospitals... $8000 for an ambulance trip (more in some places).
Malpractice limits are a good start, but it won't fix everything.
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