First, pharmaceutical companies can advertise directly to patients in America, which helps ensure demand. Second, price increases have been largely invisible to both patients and their doctors, in part because health-insurance plans often shield buyers from the true costs of their drugs. Third, Medicare, the public-health programme for those aged 65 and older, is the country’s largest drug customer, yet it is not allowed to negotiate prices with drug companies—with predictable results.
The new drugs war