Problem
Case: Price Discrimination in Practice, referencing Lee, R. (2019). Economics for healthcare managers (4th ed.).
• Why do drug firms give discounts voluntarily?
• Do other healthcare providers routinely give discounts to some customers?
• Why do the uninsured typically pay the highest prices?
• Why would a hospital usually get a better price for a drug than an insurance company?
• Why does the VA get such low prices?
• Suppose a law was enacted that required drug manufacturers to give state Medicaid agencies the same price they negotiated with the VA. How would Medicaid and VA prices change?
• Should Medicare adopt the VA formulary?