Contraception is big business, and the HHS mandate promises to turn it into a cash cow for companies like Barr Laboratories. How? Avik Roy explains: “Under the current system, drug companies have an incentive to compete on price.… Under the new mandate, this price incentive disappears.” Insurance policies that covered contraception prior to the mandate encouraged patients to forego pricey products by charging higher co-pays than for generic equivalents. The HHS mandate forbids such co-pays, so there is no incentive to choose “Brand X.”
The American Spectator : Crony Contraception
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