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It is definitely not pure capitalism in play here: The federal health department fixes the price for both brands and generics – the latter has to be priced at least 20% below the brand product for consumers to be reimbursed by their insurance company. Every few years, the government revisits the price difference, and typically adjusts the price downwards in a move to lower healthcare costs.
I really don’t know but healthcare is for sure not a free market due to the many interventions from the state.
(Btw. I don’t know if more or less state regulations benefit the patients and/ or the society more.)