Reasons As To Why Prescription Drug Prices Are On The Rise In The US
The main reason as to why prescription drug prices are on the rise is because of the existence of monopoly rights given to researchers and manufacturers of those drugs by the government. It seems like firms have been getting away with this for years and benefiting by making massive profits throughout the years. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.
The monopoly laws put in place gives the producers of these drugs the upper hand since it is a law that has been in existence for over the years. Unlike other countries where government regulates the prices of medication, in the United States, the manufacturers are the individuals setting the prices thus making them expensive. Prices can be held down if there are other people producing the same drugs as it makes firms to adjust trying to fit into the expectations of their customers and with just one or two firms, the prices keep on raising.
The production and development of any drug is expensive since there are researchers involved whose charges are high thus the drug producers try to compensate their expenses by setting high prices. When the market is small, the drugs are high for instance drugs made for cancer patients are used by a smaller group compared to diabetes. Patents given to these drug producers are long some lasting up to twenty years thus a new medication can end up being in the market for a long time without any competition.
Manufacturers have the right to sell these drugs to their clients directly thus, any marketing costs incurred are compensated by the rise in buying. In as much as insurance companies would want to negotiate for the drug prices to lower, they are on a fix and would be hard for them since the drug makers give them a take it or leave it option knowing there is no one else with the drug. However, the good part is that insurance companies try to get the best for their clients but also manufacturers try to offer coupons so that one does not use a lot of money from their pocket.
Negotiations can work in some pharmacies and if one gets lucky enough the company will accept to give them at a lower price. When selecting an insurance plan, it should be covering the cost of medication one needs within a certain period and one can use their doctor's help in picking the best insurance company. Look for alternative medication if the one you take on regular basis is high and a good pharmacist will assist you in that as long as one opens up to them instead of leaving.
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