Kaiser Permanente employees recently went on strike, drawing attention to the staffing shortages in America’s health sector. This strike, involving over 75,000 employees, was the largest in the history of the healthcare industry. In the same week, ten drugmakers announced plans to negotiate medicine prices with Medicare, marking the first time companies have haggled over prices with the government. These events highlight the deeper issues within America’s dysfunctional healthcare system, which spends a significant amount of money but still falls short in terms of outcomes compared to other developed countries. The article also discusses the rise of middlemen, including insurers and pharmacy-benefit managers, who play a significant role in the healthcare system and have seen increased influence over the past decade. These middlemen, referred to as “big health,” account for a large portion of America’s healthcare bill. The article explores how vertical integration and consolidation within the healthcare industry have allowed these middlemen to expand their reach and profitability. However, concerns arise regarding potential adverse effects, such as increased prices and lower quality of care. The article also mentions how the profits and practices of these intermediaries are under scrutiny, with regulatory efforts underway to regulate pharmacy-benefit managers. The article emphasizes the profitability of these healthcare intermedi
https://www.economist.com/business/2023/10/08/who-profits-most-from-americas-baffling-health-care-system