Annotated Bibliography In the current pharmaceutical industry, drug prices are too high and have been a big problem. The drug Price Competition and Patent Term Restoration Act（Hatch-Waxman Act) make generic drug use easier to pass. Pharmaceutical companies have become dependent on overpricing their drugs in the United States. As we all know, healthcare has always been a big issue in the United States because of the medical expenses and medicines that make people unbearable with their soaring prices. Although most people have health insurance, there are many drugs and treatments that are not covered by insurance, making it difficult for lower income households to afford medical expenses. Many patients refuse treatment because of high medical …show more content…
Other countries' medical policies can provide good healthcare for their citizens. This is a difficult job to achieve in the U.S. medical profession. There are many pharmaceutical companies that chose to increase the price to obtain more benefits from the medicine and this is also their major source of income. During my research process, I found a policy which prevents the high price of the medicines, Federal law prohibits the Food and Drug Administration (FDA), from approving a copy of a new drug for a period of seven to 12 years even if there are no patents. The FDA is forbidden to approve generic drugs at any times and this policy that has encouraged many patent claims just to delay competition. All of the information shows everybody why the medicine prices have become higher. Ever since the Hatch-Waxman Act of 1984, it eased requirements for clinical testing of generic drugs which caused a high increase …show more content…
In 2015, when Martin Shkreli outraged lawmakers and the general public, as CEO of Turing Pharmaceuticals, he raised the price of Daraprim, it is the drugs used by AIDS and cancer patients, by 5000% overnight. Medicine prices are a big issue, although the country has price control, it does not solve the problem. Therefore, the policy may provide some short-term benefit, but it would impose substantial future costs. The purpose of this research paper is to understand why the pharmaceutical industry makes their drug prices so expensive. I will also find the appropriate information and laws to prove the reasons and solutions for the higher prices of drugs.
Scherer, FM, PhD. “Pricing, profits, and technological progress in the pharmaceutical industry.” The journal of economic perspectives : EP : a journal of the American Economic Association, 1993, Vol.7(3), pp.97-115. ProQuest, URL:
In the recent years the drug industry underwent a significant transformation. Many of the big companies generate high revenues, which allow them to expand. Some of them expand on their own others through mergers and the buying of smaller companies.
There seems to be no law protecting patients from the price increases that these big pharmaceutical companies are making. Marcia Angell, is an American physician, author, and the first woman to serve as editor-in-chief of the New England Journal of Medicine. In chapter 10 of her book, The Truth About the Drug Companies, she talks about stretching out the idea on monopoly. Patents makes it illegal for a specific set amount of time for competitors to sell the same/similar drugs. Once the patent is over, when the company loses its rights to a drug, the Food and Drug Administration (FDA) arranges for the generic version of the drugs made by a different company to go out on the market. When there is only one generic brand on the market, the cost may not be as cheap because the generic brand and the brand name shadow prices. This keeps the generic version just beneath the price of the brand name. Although the generic is not that much cheaper than the brand name, in the course of one year, the brand name company will lose hundred of millions of dollars due to generic drugs. From an economic point of view,
In some instances, the pharmaceutical industry in the United States misleads both the public and medical professionals by participating in acts of both deceptive marketing practices and bribery, and therefore does not act within the best interests of the consumers. In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the-counter, or OTC, drugs.
On a global scale, the United States is a relatively wealthy country of advanced industrialization. Unfortunately, the healthcare system is among the costliest, spending close to 18% of gross domestic product (GDP) towards funding healthcare (2011). No universal healthcare coverage is currently available. United States healthcare is currently funded through private, federal, state, and local sources. Coverage is provided privately and through the government and military. Nearly 85% of the U.S. population is covered to some extent, leaving a population of close to 48 million without any type of health insurance. Cost is the primary reason for lack of insurance and individuals foregoing medical care and use of prescription medications.
Yu, Winnie and Joel Hay. 1999. “Drug Patents and Prices: Can we Achieve Better Outcomes?” Measuring the Prices of Medical Treatments. Pages 27-28.
In conclusion, pharmaceutical companies are extremely edacious and cold-blooded. Their profits numbers in the billion’s range while seniors are struggling to afford their prescribed drugs to survive. The pharmaceutical industry is strongly against Americans getting their prescriptions from Canada. Yet these people cannot help it; they are not financially secure to afford the drugs sold in America. The U.S. Government tries to isolate itself from the problem in order to make money from the taxes of prescriptions. However, almost every other country has some type of control over their pharmaceutical companies’ prices. In the future, with more and more drugs developed, only more and more money is going to be in need by the pharmaceutical industry. So unless something can be done soon, this war on drugs is only going to climb uphill. Yet how could these top-paid personnel understand what it feels like to be unable to afford prescription drugs in order to maintain a healthy body or even to stay alive? If there was an answer to that question, the dilemma of overpriced drugs might have a solution.
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. Also, as an argument to their side, they say that their practice is a benefit to the improvement to mankind. It is a life saving business, but are these prices justified? As one can see, this is a very important issue in medicine today. It affects everyone involved with medicine, which is much of the American public. It also affects the physicians and drug makers.
The United States spends more per capita on health care than any other country, with the percentage of gross domestic product dedicated to health care doubling from 9% in 1980 to 18% in 2011(Kesselheim,). One of the contributors to health care inflation is prescription drugs. Pharmaceuticals account for about 10% of total health care costs, spending on pharmaceuticals is poised to swell in upcoming years as a result of the increasing prices of complex specialty medicines (Kesselheim). Name brand drugs are going to have to be set at higher prices, in order for pharmaceutical companies to receive a profit. If the patient has full coverage on a medication, there is a greater chance that medication will be taken, although it may not be
The first social problem surrounding the health care system in the United States is the growing problem with pharmaceutical companies. The industry averages a 17% profit margin and it has been booming for decades, but the industry is being heavily led by a core group of companies (Dr. Pratt). “In 1992 the top 10 companies accounted for roughly one-third of global pharmaceutical revenue, after a period of consolidation, by 2001 the top 10 accounted for nearly half.”( Leon-Guerrero, Zentgraf, 172). These companies hold a large majority of the market share and make most of their money off patented drugs. This growing core of companies that are dominating the market are causing more problems rather than solving them. These companies are all about making as much money as they can and it shows through the salaries of the executives of these companies (Dr. Pratt). The pharmaceutical industry should have their number one priority be to the users of their products rather than profit gains.
Rising prescription drug prices are driving nearly two million Americans to cross international borders to seek necessary medications. Some are physically venturing into Canada and Mexico for the pharmaceuticals, while others are turning to mail-order pharmacies via the Internet. Purchasing prescriptions from Canada and Mexico is markedly less expensive than buying them at your local pharmacy or from a U.S. online pharmacy; however, the question is why? The why is what economists call price discrimination. It means charging different prices to different buyers of the same product. Price discrimination works in the drug industry because drugs are very expensive to develop, but inexpensive to manufacture. American consumers are exhauste...
In the United States of America, there are millions of individuals that live with chronic medical problems. In which these conditions require some sort of medical attention at least once a month for revaluation, and possible treatment. Thankfully, for the majority of those individuals with their health insurance covers those costs that essentially would cripple their bank accounts. On the contrary, there are millions of people living in the United States, who are uninsured. Even with the implementation of the Affordable Care Act or as it is known by the public Obama Care, there are still individuals who cannot afford the basic needs of healthcare. Health care should not be looked at as a privilege but a right for everyone regardless of their
There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem is the aging population. Prescription drugs are the area of the fastest growing health care expense, and it is projected to grow at 20 to 30 percent each year over the next several years. There are many newer, more expensive drugs on the market, and the use of these prescriptions is exploding. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works just as well.
In recent years’ health reform has been a driving force in the United States political system. If you watch the news, you will understand how citizens, the government, or the economy are or might be affected by some sort of change in medical regulation. One of these hot topic issues is the cost of prescription drugs. Every major drug market besides the United States regulates the price of drugs in some way (Abbott and Vernon). By the United States not doing so, many believe it opens consumers up to being exploited by large pharmaceutical companies.
One of the most prevalent and pervasive social issues in the United States today is the provision of equal access to health care for the impoverished. Far too many people live in conditions of poverty and struggle to find the means by which to meet their basic needs. For those without insurance, access to medical care is often preempted by other necessities. An unexpected medical expense can push this group further into poverty. Those who do have insurance may find themselves underinsured in the event of an emergency and unable to make the necessary co-payments. Alternatively, the insured’s provider may refuse to cover certain conditions. Besides the cost of adequate insurance and the booming cost of medical care, there are other factors that affect equal access to medical care for the impoverished. Among these are race, age, and geographic location. Poverty and the resulting inadequate medical care is a ubiquitous social problem that merits further discussion of the issue’s causes and implications.
Health insurance facilitates entry into the health care system. Uninsured people are less likely to receive medical care and more likely to have poor health. Many Americans are foregoing medical care because they cannot afford it, or are struggling to pay their medical bills. “Adults in the US are more likely to go without health care due to cost” (Schoen, Osborn, Squires, Doty, & Pierson, 2010) Many of the currently uninsured or underinsured are forced accept inferior plans with large out-of-pocket costs, or are not be able to afford coverage offered by private health insurers. This lack of adequate coverage makes it difficult for people to get the health care they need and can have a particularly serious impact on a person's health and stability.