Per capita spending on prescription drugs in America is far greater than any other country. Kesselheim goes on to say that this is a natural result of America’s free market approach to healthcare resulting in monopolies. These healthcare monopolies are not held accountable for their high drug prices. The claims that these costs can be justified through research and development is rubbish, according to
Producers work to formulate and distribute prescription drugs with diverted intentions. The authors GlaxoSmithKline state “…they turn these high prices into research toward new cures for diseases. It’s true, we in the U.S. seem to pick up most of the research tab for the rest of the world”. In this instance we get a tasteful sense that not all the money used for prescribed drugs are just baked into the profits. There stands a prodigious sum being flung into research and that may perhaps be a cause for the extraordinary drug costs. In the editorial, “The True Cost of Health Care”, “There is an estimated 800 billion put into disease research”. There is a gnawing realization that the medicinal companies pay for the research to discover more drug ingredients and cook up additional cures for these
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.
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 rise in cost of prescription drugs affects all sectors of the health care industry, including private insurers, public programs, and patients. Spending on prescription drugs continues to be an important health care concern, particularly in light of rising pharmaceutical costs and the aging population. Prescription drugs have grown to become an essential component of health care. For millions of Americans, prescription drugs are necessary to their health and ability to function in society. While prescriptions are a relatively small portion of overall health spending, they are a main reason for certain health spending trends, growing almost twice as fast all other health services in recent years. Prescription costs can be the costliest expense in your budget, especially if you are on a fixed income. The wealthy can easily afford their medications, but for an increasing population such as the elderly, choosing among purchasing medication, paying bills, or buying food is a real concern.
Over the past decade, scientists have made significant advancements in the treatment of certain diseases. Unfortunately, just like any new product, the cost of developing these new technologies and treatments is extremely high. Plus, unlike other technology, heath technolo...
In the U.S., drugs are sold on a free market basis. However, instead of competing against other companies for best-pricing scenarios (bringing lower prices to consumers), pharmaceutical companies price products based on the value to the patient. (How much would you pay to cure your cancer?) This makes baseline prices higher (as much as 80x greater now for drugs purposely kept in short supply, in order to create a higher profit margin) (Ungar). The drug Kalydeco, used for treating cystic fibrosis, costs close to $300,000.00 per year (Werth). Big pharmaceutical companies pay companies not to produce generics of their medications—a process called “Pay for Delay”. Fought by the FTC and ruled against by the Supreme Court, both authorities admit that the SCOTUS’s decision was a symbolic one, and the process is expected to continue (Wyatt). Pharmaceutical companies are re-patenting drugs by repackaging or making minute changes, disallowing them to be released to the generic market. Prices are set dependent on the purchaser. Cheaper prices are give...
“What I learned from the film was that generic drugs are selling better than the branded medication I assume it is because of the cost, of the branded are too high for consumers in the United States to afford to buy it. In the United States the pharmaceutical company’s go through a strenuous trial before they can get a patent for a medication to sell to the public. They are under strict regulations in the United States by the Federal Food & Drug Administration, they go through clinical trials before they can get a patent for medication to be distributed to the public. It also references the point that weak nations must have access to reasonably priced medications, treatments and vaccines is also creating a huge opportunity such as Africa. Pharmaceutical patent totaling sixty-billion dollars are set to expire in America in 2012. The FDA drug approvals have been in decline, and brand name medications are only 1in 4 pills. The bigger firm will do both thrive and survive in the pharmaceutical arena in health care. None of the most pertinent medicines prescribed will be a brand name in the highest 15 medicines in the America. There was a spending increase in emerging markets, and at least a twenty percent increase is expected in 2020. The sponsor payer model has shifted to the physician prescriber so pricing and market access, due diligence has become a leading issue in the Pharmaceutical decision-making process. Research and development shifts to small venture capital companies will be primary developers of new compounds. Support services network is being outsourced to create leaner more agile pharmaceutical companies. Mergers and acquisitions, eliminating repetitions and obtaining product line replications. In the U.S. alone. 50,000+...
Campbell, E.G. (2007). Doctors and drug companies, Scrutinizing influential relationships. New England Journal of Medicine 2007; 357: 1796-1797.
The CBO concluded “the average price for patented drugs in other industrialized countries is 35-55% lower than in the United States. Ultimately there is a problem, with the prescription drug trade and a solution need to be found quickly. Whether it is a two-tiered system, a mulit-tierd system, or a parallel trade relative to income system the problem needs to be dealt with and fixed. Otherwise people are going to get sick and due to the high cost of prescription drug and health care they will lose the chance to get better.