Jul 06, 2017

Why would a hospital usually get a better price for a drug than an insurance company?

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Price Discrimination in Practice: Voluntarily Discounts


Price discrimination is common in healthcare, as well as other industries. Price discrimination can increase profits. Write a two-page, double-spaced paper in APA format, including a title and reference page. Cite and reference the Lee textbook and two additional scholarly resources.
Include evidence on price discrimination and address the following questions in your paper narrative (do not copy and paste questions and answer one at a time, but rather integrate the answers as appropriate in your written text. Q & A format is not acceptable):
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?


Price Discrimination in Practice Student’s Name Course Title Date Price Discrimination in Practice The healthcare industry is facing many key issues today that have a huge impact on millions of people worldwide. The most prominent is drug pricing discrimination. Price discrimination occurs when customers are charged different prices for the same good or service for reasons such as the ability to pay or difference in demand (Bush, 2005). This paper explores this issue of drug price discrimination. In the early 1990s, the National Institutes of Health (NIH) proposed a solution to the problem of


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