The way pharmaceutical companies look at their clients is like this: It is a life or death situation for them so the customers have to buy it in order to survive. According to the annual Fortune 500 survey, the pharmaceutical industry, expectedly, made it at the top of the list of the most profitable. The top seven pharmaceutical companies took in more profit-money than the top seven media companies, the top seven airline companies, the top seven oil companies, and the top seven car manufacture companies. (…cost so much, CNN) The profits of pharmaceutical companies are outrageous and extreme. There are many reasons to why these companies are greedily taking advantage of customers.
Perhaps the main problem with health care today is that there are 37 million Americans without insurance, and another 20 million are underinsured Another large problem with the way health care is presently organized is - as Clinton helpfully points out - waste. Some common examples are: Paperwork: There are thousands of insurance companies in the US, and each one has many forms for doctors and patients to fill out. So much so, that doctors spend more time improving their handwriting than healing people. Greed and Profiteering: Some drug companies make over 10,000% profit on the drugs they manufacture. In 1991, the median income of doctors was $139,000 for general practitioners and $512,000 for specialists.
BACKROUND The pharmaceutical industry's claim that high and increasing drug prices are needed to sustain research and development is a lie to the American public. Drug companies are spending more than twice as much on marketing, advertising, and administration than they do on research and development; that drug company profits, which are higher than all other industries, exceed research and development expenditures; and that drug companies provide lavish compensation packages for their top executives. Recent prices rose more than twice the rate of inflation last year and among the top nine pharmaceutical companies (Merck, Pfizer, Bristol-Myers Squibb, Pharmacia, Abbott Laboratories, American Home Products, Eli Lilly, Schering-Plough, and Allergan), all but one (Eli Lilly) spent more than twice as much on marketing, advertising, and administration than they did on research and development, and Lilly spent more than one and one-half times as much. Six out of the nine companies made more money in net profits than they spent on research and development last year. The executive with the highest compensation package in the year 2004, exclusive of unexercised stock options, was William C. Steere, Jr., Pfizer's Chairman, who made $40.2 million.
Price discrimination works in the drug industry because drugs are very expensive to develop, but inexpensive to manufacture. American consumers are exhauste... ... middle of paper ... ...rm debate. The Pharmaceutical Research and Manufacturers of America have lobbied against legislation to allow drugs from other nations into the United States. Prescription prices in America have increased beyond affordability and are hindering the health of the nation. Americans are forced to bear the burden of research costs and are being turned into deviants and white-collar criminals.
In July 2006, the issue was transparency: should the American people know the price of the health care service they use and the results doctors and hospitals achieve? The Wall Street Journal article revealed that “U.S. hospitals, most of them nonprofit, charged un-insured patients prices that vastly exceeded those they charged their insured patients. Driving their un-insured patients into bankruptcy." (p. B1) The most expensive health care system in the world is that of America.
“In 2002 American paid an average of $5440 in medical expenditures, up $419 from the previous year alone.” (Frosch, 2005) The major increases in medical costs can be attributed to technological advancements and the high costs associated with break-through drugs. Capitalism is the driving force of the medication industry. Higher medical costs are the first major factor increasing health care costs. “What you’re seeing in the bankruptcy numbers is a function of the fact that there is a very thin social safety net in this country in terms of health care.” (Frosch, 2005) Another major factor is the huge spike in the past fifteen years of uninsured Americans. In 2005, there are 45 million uninsured Americans, a jump of 10 million since 1990.
Prescription drugs even exceeded the rapidly rising inflation rate for all other medical services. They now represent at least 10% of all the medical costs in the United States.1 Why are the prices so high? Some critics of the drug companies argue that the larger firms are ripping off the American public, are dishonest and, in some cases, unsafe. On the other hand, there are health care workers such as doctors and their supporters who claim that research and testing for drugs costs money. This supposedly justifies their prices for their products.
Health care and prescription drug costs, whose escalating prices have caused many Americans to go without adequate medical care. Health care is one of the most controversial issues in the news right now. The co... ... middle of paper ... ...one the rising costs of health care costs is going to overwhelm the U.S. economy. Works Cited HEALTH: MEDICARE AND THE ECONOMY, By: Dean Foust, 6-28-04, Business Week MEDICARE: ISSUES IN THE POLITICAL ECONOMY, By: Jonathan Oberlander, Feb. 2001, Journal of Health Politics AN UNHEALTHY ECONOMY, By: Paul Barr and Jeff Tieman, 11-29-02, Modern Healthcare MENDING MEDICARE, By: Bruce C. Vladeck, Spring 2000, Issues in Science & Technology EFFECTS OF MEDICAL RESEARCH ON HEALTH CARE AND THE ECONOMY, By: Herbert Pardes, Kenneth G. Manton, Eric S. Lander, H. Dennis Tolley, Arthur D. Ullian, Hans Palmer, 01-01-99, Academic Search Premier HEALTH CARE REFORM IN THE 1990S: AN ANALYSIS OF THE PROBLEMS AND THREE PROPOSALS, By: Robert F. Scuka, Sept. 1994, Social Work
It should be no surprise then that the United States leads the world in every category of health care cost, often times charging twice more than the second most expensive country. Unlike the United States, nearly every other industrialized country in the world utilizes a non profit socialized health care system provided by their national government to provide healthcare to all of its citizens.This system, known as a single payer system, is able to set definitive prices on medical procedures while eliminating the need for negotiating and extra administrative task.Through socialized health care, countries such as Canada and the UK have been able to hold down cost benefitting the people in their respective countries (Goldman, Phyllis
HealthCare: Most Expensive and Worst Performing,” the writer Olga Khazan tells the readers that in 2014, America was a country with a highest cost of healthcare in the world ($8,508) , and the cost of healthcare higher $3,000 than Norway, the 2rd country in the world ($5,669). Plus, according to Kaiser Family Foundation, the Unite States hospital’s cost for inpatient per day in 2013 is really high, and it may increase in future, such as New York is $2,194 per day, Texas is $2,242 per day, California is $3,128 per day (the highest) , and much more. Plus, each American family needs to spend a lot of money for the healthcare about $450 per month and more than $ 5,400 per year. As a result, when