I recently completed a research project as to why prescription drugs cost so much. This is what I found. The costs are in current dollars and per person. My source is Heath/Human services
In 1960.... $14.71...Inflation
1970.... $26.19.....19.28
1980.....$52.18.....40.95
1990....$158.66.....64.95
2000....$827.00.....85.58
2008....$770.00....107.00
Big drug has a 17% profit margin. Now for the reasons. Medicare was enacted in 64, the cost shifting started there and as more people got into Medicare the costs rose higher. The biggie was Hillarycare. I know a retired exec from a big drug co, he told me that knowing Hillary would cap big drug all drug cos raised their prices to fudge on that cap. There was no public or congressional outcry so they never rolled their prices back. Note the time period from 90 to 00, drugs went from $158 to $827. Also note under Bush and the drug bill he signed prices actually went down although inflation went up.
You are seeing the same thing with Obamacare.
I'm there, Old, Tired, Broke and Henpecked