The insurance companies get to spend less paying for treatment, and using the tax system gets around the public goods problem which prevents insurers from doing this voluntarily.
That makes no sense. If you put a limit on potential returns by instituting a fixed "X-prize", why would companies continue to invest in R&D? Wouldn't they just pick the cheapest to develop drugs in order to maximize their return?
That makes no sense. If you put a limit on potential returns by instituting a fixed "X-prize", why would companies continue to invest in R&D? Wouldn't they just pick the cheapest to develop drugs in order to maximize their return?