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When I wrote that I was thinking along the lines of the government negotating the prices of drugs that it purchases through Medicare. I'm pretty sure that they are prohibited from doing so. I also think that in many other countries the govern. negotiates the prices of drugs and services and there may not be any 3rd parties (insurers). I think they also regulate things like what/how many hospitals can perform cat scans and negotiate with the seller what they'll pay for that equipment. So if Medicare negs. the cost of drugs does the cost curve still get altered given there are still 3rd parties? Also, with the price of some drugs over $100,000 per year or treatment as they may be under patent, isn't the supplt/demand curve being altered?
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