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Stock Watch: Gaming The US Health Care System

Pharmacies Should Be Held To Account For Role In Drug Price Inflation

 
• By Andy Smith

The pharmaceutical sector is often unfairly demonized in the drug pricing debate. Other participants exploit the complex US health care system almost with impunity.

Stock Watch Image, Andy Smith
ANDY SMITH OFFERS A LIFE SCIENCE INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

Most developed market taxation systems distinguish between tax avoidance and tax evasion – only the latter is illegal. Avoidance involves gaming a complex taxation system replete with regulations and loopholes, which allows some individuals and corporations to pay less tax. US health care is also a complex system where gaming can result in its exploitation.

Complex systems, like the weather, are comprised of many components and forces that interact with each other and make accurate modeling difficult. The stock market is a complex system, which,...

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