But governments and insurers don't save money by saving your life. They save money by letting you die before you get old. That was the ironic thing about the tobacco settlements in the US - the states sued the federal government claiming damages for the extra care they had to provide to people who smoked, when those people would have cost the state more money if they'd lived a normal lifespan.

In some cases a new drug will save money by keeping some damaging disease from becoming a problem and pushing expensive treatments far into the future. That's not the normal case, though. I'm all for helping people live out their threescore and ten in good health, but on average it doesn't save anybody money.

>Also, demand for drugs is often inelastic, so people are more likely to make sacrifices here to pay for drugs. Which is fine in itself, but not when the high costs are the product of a cartel arrangement between government and industry.

Here again there has to be some way for the people doing development to recover their costs. The patent system allows the drug company to charge more to every patient who takes a drug for twenty years. Without it that would all have to be covered by tax money. I like the patent system better, since it's biased toward charging people with lifestyle-related problems more money than people who take care of themselves.

Also, with the patent system companies will spend money on development for treatments that are within the realm of scientific possibility and not because advocates for that particular disease have more political clout. How many billions were wasted in the "war on cancer"? Government just doesn't do this sort of thing very well.