Relationship between health insurance companies and pharmaceutical companies?

Question

I was in a discussion with a friend on how I think the American nation has been "Michael Moorified" into thinking that a socialized healthcare system is the only way to improve the healthcare system. My argument is that I believe in free economics and privatization of industry in order to help minimize costs and let that specific industry run most efficiently, and that I am disappointed that Americans have not been innovative enough to come up with a fair, efficient privatized healthcare system.

That was a bit of a tangent but here's my main question...what relationship do the health insurance companies have with the pharmaceutical industry? Even if the U.S. is number 37 in healthcare, isn't it number 1 in pharmaceutical drugs? If we were to socialize healthcare, would that affect the quality and innovation of the pharmaceutical industry?

Answer 1

You are mostly correct that America has the most advanced pharmaceutical industry in the world but that has very little to do with free market economics and a lot to do with government subsidies.  Most of the research that pharmaceutical companies rely on to find new drugs is supported by tax incentives.  Indirectly, almost all of the scientific personnel employed by the pharmaceutical industry were trained in laboratories doing government funded research.  Without a pool of well trained scientists drug discovery would be impossible.   More government involvement in health care will not necessarily be a bad thing for the pharmaceutical industry in America provided that research continues to remain a high priority for funding and that profits to the industry are sufficient to keep it healthy and growing.

Answer 2

The answer could vary by person.It is alway a good idea to hear the suggestion from different sides and try to choose the best one.Here is a good one i recommend.http://health-insurance.onlinebestoffer....