The rising cost of medications continues to be a debate amongst pharmaceutical company’s, health care providers and patients. The concern of overpriced medications has been an issue that the government has been more aware of recently, but they are not able to decide on how to take the proper precautions in resolving this issue. The cost of medications are significantly higher in the United States than in the rest of the world because the U. S. allows pharmaceutical companies to set their own price for their medications. The U.S. tried to step in before to get pharmaceutical companies to lower the price of their medications, but it ended up hurting the pharmaceutical companies and the healthcare system. Pharmaceutical companies were not able
Every year a large number of new medicines receive marketing authorisation. It is the National Health Service (NHS) responsibility to decide whether the additional cost of purchasing these medicines is justified by the likely benefit to patients. For this reason, a multi-disciplinary activity known as the health technology assessment (HTA) has been created. In the UK, HTA mainly focuses on the clinical and cost-effectiveness of new medicines.
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.
The United States of America accounts for only 5% of the world’s population, yet as a nation, we devour over 50% of the world’s pharmaceutical medication and around 80% of the world’s prescription narcotics (American Addict). The increasing demand for prescription medication in America has evoked a national health crisis in which the government and big business benefit at the expense of the American public.
Direct-to-consumer prescription drug ads are dangerous and can have serious effects on the health of the general public. In the article “Pros & Cons Arguments: ‘Should prescription drugs be advertised directly to consumers?’”, the pros and cons of the advertising of prescription drugs are compared. The negative aspects of these ads outweigh that of the positives. DTC prescription drug ads misinform patients, promote over-usage, and pressure medical providers. The counter side argues that these ads inform patients, create a positive impact on patient compliance with medication, and cause patients to confront their doctors.
Although writing a prescription may be an easy way to put a bandaid on a problem, people tend to forget that medication can’t be responsible for curing our nation. Slowly we are becoming a country where pills are handed out like candy, causing a severe series of negative effects and downfalls. Ray Bradbury, the author of the award winning novel Fahrenheit 451, is definitely in agreement. In 1951, when the novel was written, Bradbury was able to make the prediction that the innocent use of medication would soon turn into an extreme drug epidemic, and unfortunately he wasn’t wrong. The overuse of drugs in the United States, such as mental illness medication
In America, it has become a battle to earn a high paying job to cope with the expenses of a typical American. It has become even more of a battle for some people to afford medical prescriptions to keep healthy. Health becomes a crucial issue when discussed among people. No matter what, at one point or another, everyone is going to stand as a victim of the pharmaceutical industry. The bottom line is Americans are paying excessive amounts of money for medical prescriptions. Health-Care spending in the U.S. rose a stunning 9.3% in 2002, which is the greatest increase for the past eleven years. (Steele 46) Many pharmaceutical companies are robbing their clients by charging extreme rates for their products.
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.
An Analysis of GlaxoSmithKline The business that I have done research into is GlaxoSmithKline. This company is a globalised research-based pharmaceutical public limited company. Its ownership structure has changed a great deal since the original company was first established in 1715. Originally a pharmacy, the company has expanded, merged with and taken over other companies over the decades.
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
Due to patents, Pfizer and other companies in the pharmaceutical industry are not always competing in a monopolist’s competition. When a business has a patent they are the only manufacturer who can produce the product until the product expires, so it is clear that the firm can act as a monopoly while in control of the patent. As a monopolistic company, the company has market power, giving it the capability to adjust the market price of a good. The main goal for a monopolist and business owner is to maximize their profits, however, there are rules they have to abide by. The monopolistic companies still have to keep up with the market demand curve. The point at which they decide to produce will rest on their own acidities of revenue, risk and effort. The company also needs to know the price elasticity of the curve: the greater the price elasticity, the more a company such as Pfizer will struggle to establish high prices and a high volume.
The Overpill Documentary portrayed very good points on how prescription medications can be negative and examples on how the pharmaceutical industry is pushing prescription medications to the public. The documentary was very eye opening about this epidemic, and filmed real life experiences of people and their families suffering from these medications. They interviewed people of presumed credibility that also gave reason to believe that there was false information being marketed. Although while watching the film I could agree and sympathize with these individuals, I felt that it was lacking in some areas.
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.
Healthcare executives’ dilemma over drug pricing reminds me of Goldilocks, the little girl whose porridge was either too hot or too cold until she found something that was “just right.” Like Goldilocks, pharmaceutical executives are struggling for the perfect solution to pricing drugs that are affordable to the public but profitable for their producers. Payers, patients, and even politicians have increasingly focused on high drug prices. Manufacturers blame high prices on government regulations, shareholder expectations, and the complexity of biology. But discovering new drugs costs money: who will pay for it?
Pharmaceutical patents are patents for inventions within the pharmaceutical industry. Patents give exclusive rights for an invention for a product or a process of making a product [1]. There are many aspects to patents in the pharmaceutical industry that are both pros and cons; it just depends on what industry you are in. Pharmaceutical companies take out patents so they can regulate the market and restrict competition from other companies. By obtaining patents pharmaceutical companies also attract investment. In addition to this pharmaceutical companies can also regulate the price of the drug as they will be the only company selling that drug. However these aspects of patents can adversely affect the generics industry. The generics industry cannot make or sell drugs that are patented but once a patent licence expires, both the generics industry and the WHO see increased benefits as drugs become more widely available around the world (i.e. developing countries) at a lower price. Here we will discuss the pros and cons of patents from the point of view of the pharmaceutical industry, generics industry and the WHO.