Forbes October 21, 2020
Sky-high prescription drug costs remains one of the most hotly contested issues in healthcare today. U.S. prescription drug spending exceeds $500 billion a year and is growing at a rate that’s three times faster than inflation, according to a House Ways and Means Committee report.
While there is no shortage of policy levers being proposed and pulled at both the state and federal levels to address it, unfortunately the policies do nothing to address the core issue: information asymmetry. Unlike other decisions we make every day that include an exchange of money for goods or services, decisions around which prescription is most appropriate is made in a virtual black hole, a vacuum, without any outside knowledge. Consider the act...