A lot of my family is concerned about a future insulin shortage and it's reported that this shortage is growing. When I read articles from Harvard about it, they imply it's pure greed:
There are no generic insulins. Over the past twenty years, prices for the most commonly prescribed “analog” insulins have risen from about $20 per vial to well over \$250 per 10 mL vial, an over 700% increase after accounting for inflation. In contrast, insulin today costs roughly five dollars per vial to produce. With deductibles far outpacing wages, insulin has become unaffordable even for well-off Americans.
If it costs us 5 dollars to produce, why don't we all start insulin companies and sell it for $15, attracting all the business (as well as popularity since we have better prices). Is greed really the issue, or is there another economic explanation, like the resources involved in insulin-making are in a shortage? Or the regulation of producers? Or the possible lawsuits producers face if they make a mistake?
It sounds like anyone could compete against these greedy companies and put them out of business. What am I missing?