The Rise of Prescription Drug Costs
The rise of prescription cost in the USA is getting higher. You will know why this happened and how you can help about it. You will find the answers here.
Healthcare costs so much these days. There is this one area in the healthcare system that goes higher than the other ones.
Here is why these prescription drug costs are expensive and what you can do about it.
No Drug is Cheap These Days
People are in search of affordable drugs these days to be able to sustain their medications and heal their sicknesss. You should see the statistics in the recent years before you can have the answer of why these medicines are so costly.
From May 2015 to May 2016, an article reported that the prescription drug costs had a 10% increase.
That may look little but it is not.
But consider this:
Inflation grew 1% simultaneously. 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.
Why are Drugs Getting More Expensive?
There are actually many reasons why drugs are getting more and more expensive.
But nothing still is for sure.
These are the reasons listed for you, answering why drugs are pricy:
The Industry Explanation That You May Believe
According to the pharmaceutical industry, they are producing more effective and complex drugs, which is why their manufacturing and research and development costs elevate, too. The money and effort they spent should be returned. People are trying to understand this.
The Reason of the Economy
The aging and retiring baby boomer are not patients of healthcare services. 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.
These patients are already maintaining drugs which make these in demand. Drugs are pricy because of the strong demand.
The Anti-Industrial Arguments You Should know
Most governments implement a grace period for a certain new drug to be on the market without having competitors. This is said to make companies make more quality medicine.
Companies are conducting ‘evergreening’ in the past few years. This is the process of making little changes only to their drugs. This way, the price of their product will remain high.
Economics is the basis of the second anti-industrial argument. 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.