Did you know that when the government subsidizes drug costs (especially through Medicaid and Medicare), it raises the price for the rest of us? This is why.
Look at a drug under patent. The company producing that drug has a monopoly for the drug, and prices the drug accordingly by setting the quantity where marginal cost equals the marginal revenue.
In the United States, however, the government has responded to political pressure about the high costs of prescription drugs by subsidizing drugs, usually by purchasing large amounts (through Medicaid) or, more recently, subsidizing insurance companies that provide prescription drugs under a Medicare program. This raises the demand for the patented (or orphaned) drug in question. The monopoly chooses to sell more of the drug at a higher price. People who are ineligible for the subsidized medicines are forced to pay a price for the drug that is higher than the price that they would pay if the government did not subsidize the drug.
Clearly, the Drug companies would welcome such purchasing subsidies, and clearly, if a person is not receiving subsidies, then the cost of the subsidy is not only the government outlays of the subsidy, but also the higher price paid by unsubsidized citizens.