If you want an example of how government meddling in health care raises rather than lowers costs, you need look no further than the FDA’s idiotic policy on a venerable gout medication called colchicine:
Gout sufferers can thank the FDA for the 10,000% increase in the price of an old treatment. An old drug used to treat gout (colchicine) used to cost mere pennies per tablet but now a newly approved version is $5 per pill.
How did the FDA work this miracle? It granted a monopoly to a pharmaceutical manufacturer called URL Pharma, Inc.
The FDA recently gave the maker of [colchicine] exclusive rights to market it for three years. The period of exclusivity was in return for commissioning several studies showing this drug (that has been used for decades) was in fact, safe and effective.
So, like all monopolies (which, by definition, have no competitors who might offer lower prices) URL was able to raise the price with impunity. Why is the FDA pursuing a policy that so clearly works against the consumer? Control, of course:
Many drugs already in existence when the FDA gained control over approval for prescription drugs were allowed to continue to be sold [like aspirin]. The FDA has recently begun trying to rein in some of the old drugs that predate the FDA approval process.
So, the FDA is granting monopolies that hurt the consumer simply because it, like all government bureaucracies, wants to expand its power. It wants to wrap its tentacles around anything it does not already control.
Welcome to the world of government-run health care.