Recently there has been a flood of feel-good commercials from the pharmaceutical industry toting how they are helping those “po folk” who can’t afford prescription drug coverage. They offer these drugs to those people at “discounted rates.” What is the discounted rate? The most that the person is able to pay for the drug.
Whenever I hear these commercials, I am outraged. The practice that they are describing is one of price discrimination - and it is illegal. (There is a link to some economics website at the end of this post that talks about it.) Basically - what they are doing is sticking it to the insurance companies - who in turn stick it to their policy holders.
Maybe this concept is lost on me. What do you think about it?
Monopoly - Price Discrimination
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