Prescription Drug Companies: A Case Study

The prices of prescription drugs in the United States are by far the highest in the world. [1] On average, Europeans pay 40% less than Americans for the same medications. [2] Consumers have been resorting to several ways, sometimes putting themselves in harm’s way, to alleviate the burden of high prescription drug costs. Some buy their medications online or cross the borders to neighboring countries so they would be able to afford buying their needed medications. Others have resorted to the illegal act of selling their unused medications in online forums just to recover part of their expenses. Many factors contribute to the increased drug prices in the United States including research and

A review of the records reveals the member to be an adult female with a birth date of 03/14/1983. The member has a diagnosis of Generalized Anxiety Disorder. The member’s treating provider, Vickki-Ann Samuel, MD recommended the member continue treatment using the prescription medication Pexeva 30 mg.

With soaring medication prices, many drug manufactures have the aspiration to increase profits, which have the effect of rising drugs cost and concerning for Americans. Fortunately, both Democrats and Republican have illustrated interest in passing Prescription Drug Affordability Act of 2015. Captivatingly, the act will allow Medicare to consult manufacturers and set affordable prices. Many have also requested to allow of purchasing medication from Canada which currently has lower drug cost. Reports often appear in the popular press about American consumers who go to Canada or Mexico to buy their prescription drugs at a fraction of what they would pay in U.S. pharmacies, even though doing so is illegal (1). By contrast, the United States leads

This results in people not being able to receive the necessary healthcare, especially since majority of tests done a person are not needed. Many of the times when doctors order tests to be run, they are aware that the test is unnecessary but they need to be sure to cover themselves in the unfortunate case of something happening. Other people are also pressuring doctors in running tests to increase their RVU, unit of billable activity per hour. If a doctors RVU is not high enough they are pressured into running more tests and seeing more patients, rather than actually helping the patient. The drug industry only amounts to approximately 12 percent of the total cost of healthcare in America. The total sales of the top five drug companies in 2005 were 222 billion dollars. Drug companies state that the reason their products are so expensive is so they can fund the research and development of the drugs; however, only 32 billion dollars were spent on research and development, 71 billion dollars on marketing, and 39 billion dollars in profit. The facts listed above are all contributing factors as to why healthcare is so expensive, but the most significant reason healthcare is expensive is due to the cost of the paperwork.

This is a serious long-term concern, and needs to be addressed. Some methods to ensure medications are lowered and kept at prices Americans can afford, is to create policies to demand transparency from pharmaceutical companies, allow generic drugs to be created, and remove the ban on Medicare permitting them from negotiating prices on medications.

Firstly, our current pharmacare system does not provide access to individuals who need prescription drugs and are unable to afford it (Morgan, Daw and Law 2014). Prescription drugs are inputs into the broader health care system. As such, if prescription drugs are taken on time, this allows the healthcare system to meet patient health needs (Morgan, Daw and Law 2014). Secondly, our current pharmacare system does not ensure that the financial costs associated with necessary medicine are equally distributed (Morgan, Daw and Law 2014). Unequal distribution of the costs of necessary medicine can further drive income inequality (Morgan, Daw and Law 2014). Also, employers are under no obligation to continue providing private insurance for their employees

Our sister country Canada Health has a drug review board to assist with keeping price points in line for the Canadian people. The drug review board for Canada assesses all new prescription drugs on the market and determines how effective the drug is compared to the relative drug that is already on the market. After adequate research the Canada Health system decides what they are willing to pay for the drug; if they are unable to reach an agreement that prescription is not allowed to be provided with in the country and an alternative approved drug will be used in its place. As of right now for us in the United States, our hands are tied; private and even federal-government provided insurance Medicare, cannot by law negotiate prices with pharmaceutical companies (Kounang).

In recent years, the costs of all forms of medication have skyrocketed. If you or a loved one has been to the hospital recently, you know that the cost of the drugs is absurd. Many people believe that Big Pharma is to blame. Big Pharma is an industry term that refers to the large multinational drug companies that command a majority of the global pharmaceutical market. These companies have been accused of many scandalous actions including spending more money on new drug marketing rather than product development, as well as specifically targeting doctors who prescribe more drugs. Several controversial business techniques employed by Big Pharma are also to blame. Big Pharma has also had a large impact on the recent opioid crisis with numerous

Many people see the drug price increases made by Martin Shkreli of Turing Pharmaceuticals of the toxoplasmosis drug Daraprim by 5000%, or, the EpiPen’s 400% price hikes as being immoral, unnecessary, and just price gouging, but others and I argue that the increases are well justified and really not detrimental to consumers. Dr. Nitin Damle of the American College of Physicians had this to say on the matter to members of congress, “The research, development, regulatory, and payment systems for prescription medication are deeply intertwined, and the pressing issue of drug pricing and payment will require comprehensive efforts not only by Congress,

Prescription medications ordered by physicians to treat a patient’s ailment are intended to be used strictly as prescribed to relive painful symptoms or to act as cures for various illnesses both physical and psychological, and yet often time’s they are abused, meaning they’re taken for unintended purposes, in unwarranted ways, amounts, or by those other than the individual for whom they were prescribed (Robinson & others, 2015). A number of individuals take prescription drugs for recreational purposes and are lucky enough not to experience any negative health impacts, adverse side effects, or addiction. Yet, for every person who abuses prescription medications without experiencing dangerous consequences, there are countless other abusers who will. For instance, abusers of opioid medications such as OxyContin, the Schedule II federal calcification brand name for oxycodone-hydrochloride; an opioid (narcotic) pain reliever used for analgesic purposes; may experience respiratory complications, reduced lung function, irregular heartbeat, increased alertness and/or extreme fatigue, dizziness, swelling of the eyes, tongue, and throat, rash or hives, decreased cognitive function,

The government can only control so much unfortunately this is a touchy subject amongst politicians. There are two ways that the government is currently regulating the prescription drug market, 1. Price controls, usually in the form of required discounts off the average price paid by other purchasers.2. Negotiated pricing, in which the government wields its market power to bargain for favorable rates from pharmaceutical suppliers” (Drug Price Control: How Some Government Programs Do It, 2016 para 2). There are a couple different programs that also benefit consumers if they are eligible such as Medicaid, The Veterans Health Administration (VA) and the Department of Defense (DOD),

Prescription drug prices continue to rise in the U.S., mainly driven by the introduction of specialty drugs. There are very little indications that costs will stabilize soon. The issue has moved back into the national political scene. Presidential candidate Bernie Sanders has announced he will introduce a bill that takes aim at these private drug companies, ‘big pharma.’ But in order to change the policies regarding the pharmaceutical industry, one must understand their history. The modern pharmaceutical industry traces its origin to two sources:

America is making profit out of prescription drugs, being the wealthiest country, people in America should not live in fear that they would go bankrupt or die if they cannot afford the drugs. Drug companies need to stop being greedy, selfish, and uncaring. These drugs are expensive, however, many Americans cannot afford these prices. The increasing cost of prescription drugs in the United States has become a source of concern for million of patients. They are taking advantage of innocent elders, consumers are unable to purchase prescription drugs, and the pharmaceutical industry is contributing to the high price of prescription drugs. This issue is important to me because I am planning to go into the pharmaceutical industry. I want people to

Turing pharmaceuticals in particular, raised the price of Daraprim from $13.50 to $750 per tablet. The narrow market demand for Daraprim, and Turing’s complete control of the distribution of Daraprim allowed Turing to act like a monopoly. Additionally, the approval process of the FDA provide less incentive for other pharmaceutical companies to produce generic forms of the drug. The FDA can speed up the approval process, and aid other pharmaceutical companies compete. Moreover, the government can allow Medicare to negotiate price of drugs with pharmaceutical companies, as a result lowering the price of the drugs and guaranteeing the safety of

“There is no evidence to suggest that the pill works any better except, perhaps, for doctors and the middlemen supplying them. They can charge $3.45, or about five times as much as a five- or 10-milligram pill.” (Meier 1). The medical field nowadays is mostly for profit. The Hatch-Waxman Act encourages the manufacture of generic drugs by the pharmaceutical industry and established the modern system of government generic drug regulation in the United States..”Nearly 25 years before the passage of the Hatch–Waxman Act, consumer advocates on and off of Capitol Hill complained that the high cost of drugs was driven by the protection of brand monopolies long after original patent monopolies had expired.” (Greene 1). Prescription monopolies rule the medical field, and control medication