I don't claim expertise in science or medicine and your theory sounds fine to me. Why is my example not a good one? Certainly taxpayers are paying the freight for most AIDS patients. Where do you disagree?
I agree that we are paying the freight. The problem I have with the example is that the premise for the payment is false. The Government is paying for medication that doesn't work and that they know doesn't work because the politics of the situation (don't get the gay communitity and their supporting major media mad at you) requires it. The Government is not doing anything and we are not paying for anything that actually helps people with AIDS.
Consider the "social costs" of my solution which is to do nothing. People with AIDS would die and they would keep on dying until the gays and drug users finally figured out what was killing them. Right now they are told and I think convinced that it is a virus and not their drug habits that are doing the trick. This gives them carte blanche to keep right on taking the drugs that are killing them.