This was a question I saw posted on a random forum discussing the reasons why pharmaceutical and biotech companies have meds that cost so much. In the P.S.Y.C.H. plan, there is no money for research, and I think it should stay that way.
Research, in my opinion, is best left to universities with funding from the general government (in the form of NIH, NIMH, CDC, etc.). If there are entrepreneurial companies that want to create the "next best thing," I'm all for that too, but their funding shouldn't come directly from health care funds.
Think about it. If a pharma company created a wonder drug and charged thousands for it (which they already do now under our current broken system), what impetus do they have to bring the cost down?
Well, if there's no one that wants it or is willing to pay for it, either they'll bring the cost down or won't develop it at all – or they'll find a way to make money. For instance, they may start collaborating with colleges and universities and "sponsor" research. Or they can sponsor crowdsourcing campaigns to collect money and concentrate on addressing the health care needs of the populace.
One thing I know for sure is that as long as there's one person with money and another person without money, there will be ingenuity for one to willingly give to the other in exchange for something.