Study: My Understanding of Pharmacies
The Rise of Prescription Drug Costs
In the USA, the prescription costs are not getting higher than before. You will know why this happened and how you can help about it. This is the perfect article for you to know the answers.
Healthcare costs so much these days. Th healthcare system has an area that keeps rising every time.
Here is why these prescription drug costs are expensive and what you can do about it.
Drugs are Never Cheap Nowadays
People are in search of affordable drugs these days to be able to sustain their medications and heal their sicknesss. You should see for yourself the statistics before answering why these medicines are so over priced.
Last May 2015 to May 2016, the price of prescribed drugs increased about 10%.
The escalation may look small but it has given already a big impact to the community.
See these information for yourself:
Inflation increased 1% at the same time. Booze and food prices increased for 2.8%. An increase of 5.7% also happened to the price of clothing. The rise of the prices of the other basic needs has no match to the rise of the cost of prescribed drugs.
The Reason why Drugs are Expensive
There are actually many reasons why drugs are getting more and more expensive.
But nothing still is for sure.
Drugs are pricy because of these following reasons:
The Explanation the Industry
The pharmaceutical industry defends that they are producing drugs of very good quality already which means these are worthy to be very pricy, too. They are giving astounding services so it means they deserve good returns. Many do not understand this process.
The Reason of the Economy
Since baby boomers are now retiring and aging, healthcare services have more people to cater. A specific drug’s demand is getting higher since a lot of people are using it. If the demand is good then the price will go up, too.
If a drug is always bought by these patients, it will be in demand. So you will not wonder if the price goes up again.
The Anti-Industrial Arguments You Should know
A grace period implemented by most of the governments is when a drug is still new and out on the market and no competitor is allowed to make one like it. This is believed to be one way of making companies produce good quality.
Companies are conducting ‘evergreening’ in the past few years. This means they are just going to alter a little on their medicine. This process will prolong the high price of their product.
The second ant-industrial argument is more on economics. The argument here is about the drug being an inelastic good that the demand is not really sensitive to its price.
Imagine a $10 cracker for this one. If people will increase the price of the cracker to $25, most people will stop buying the cracker.