I didn't say the government writes a blank check. They have a list of legitimate procedures, and fix a price for them. The administration is able to get a good price because it is in a strong bargaining position against pharmaceutical companies. However, price has historically not been a factor in deciding the medical effectiveness of a treatment. There is currently a debate on whether it should be: is it justified to cover cancer medicine costing 500.000 EUR per patient per year for life ([1], in Dutch)?

[1] http://www.mloz.be/nl/art/dure-geneesmiddelen-structurele-ma...