Subsides

A commonly used but seldom recognized means of paying for expensive treatments is government subsides on medical research.

The idea is simple: If government contributes to part of the R&D cost of a new medicine, the final price could be reduced. At least in theory, explicit agreement could be signed to limit the final market price of a new product when the research bears fruitful result.

It sounds great, eh?

The problem is, however, a conflict of local versus international interest. As a government, the aim is to help its own citizens. In other words, a new drug whose development is subsidized by, say, the American government would be affordable for patients in the States but remains astronomically expensive for other countries. After all, why should the government contributes even more for the R&D so that the price could be lower for every other people on earth?

It follows that affluent countries with more resources for R&D would enjoy dual benefit. Their people enjoy cheap technology, and their companies earn a gigantic profit from everywhere in the world.

Alas, you see, this phenomenon does not happen only in medicine, but also computer, mobile phone, and almost all fancy gadgets of our life.