Prescription Drugs Essay

1067 Words3 Pages

Recommendation 1: Allowing temporary Importation of Prescription Drugs
Allowing temporary importation of prescription drugs during sudden increase in prices from countries that follow drug safety standards similar to the United States will help to reduce prices. Temporary importation of prescription drugs have to be designed carefully, should be a response to a market failure, and not aimed at imposing price controls.
Importation of prescription drugs will bring price relief to overburdened seniors. However, importation is good; care and caution have to be taken in order to avoid unintended consequences in the end. There are principles to consider while importing prescription drugs, these include the Food and Drug Administration FDA should …show more content…

Allowing importation of patented drugs or statutory exclusivity in the case of price increases this will undermine the patent and the statutory exclusivity system thus making it impossible.
Any importation of prescription drug has to be temporary and with an expiry date, lasting until the uncompetitive practice that led to hiking prices in the US has ceased. The US drug market unlike the ones abroad its very different. If importation without strict controls and time limits are allowed; it will undercut the market and the result will be less innovative products.
Lastly, any importation of drugs into the US should have to preserve quality control. Many countries pharmaceuticals industries standards are lax while others are stringent and comparable to the US. In case of shortages, the FDA allows importation from those countries with strict regulatory controls for example Canada where the prices of prescription drugs are lower than the US.
Recommendation 2: Increase Transparency in the Health care …show more content…

The distribution network from the manufacturer to the consumer is also not transparent. The drug manufacturer does not have to be the pharmaceutical drug company with the rights over a drug, and neither of the two has to be the distributor. There is a long chain of intermediaries before the drug reaches the consumer. They have concealed identities and they create barriers to prevent new entrants into the market. The role of key players in the supply chain is not transparent. The Pharmacy Benefits Manager’s role is to secure a good deal for the consumers by negotiating prices with hospitals, employers and the pharmaceutical industries. More light needs to be shed as whom the beneficiaries of the services offered by the Pharmacy Benefits Manager and how much they charge in the

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