Prescription Drug Costs are Getting Expensive
The price of prescriptions in the USA is escalating. You can do something about this if you know the reason of this price hike. You will find the answers here.
Healthcare costs so much these days. In the healthcare system, there is an area that keeps getting higher than the others.
You need to know why these prescriptions so expensive so you can make a move about it.
No Drug is Cheap These Days
People need affordable drugs to cure themselves or their loved ones. 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 increase may look deceivingly little but it is already very big.
But consider this:
Inflation grew 1% simultaneously. There is a 2.8% increase in booze and food prices. An increase of 5.7% also happened to the price of clothing. The information given to you right now means the rise of the cost of prescribed drugs is much more drastic than the other basic needs.
Drugs are Expensive for a Reason
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 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. The money and effort they spent should be returned. Many do not understand this process.
The Economy has a Reason
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. And if the demand increase, the price goes with it, too.
Patients need a lot of the same kind of drug which make a lot of drugs in demand. Now you know why drugs are very pricy already.
The Anti-Industrial Arguments You Should know
Most governments have grace periods for new drugs where no other company are allowed to compete with it. This is believed to be one way of making companies produce good quality.
Some companies are practicing ‘evergreening’ for the past years. This is the process of making little changes only to their drugs. This way, the price of their product will remain high.
The second ant-industrial argument is more on economics. The argument here is about the demand of the drug, being an inelastic good, wherein it should not affect the price.
A perfect example is a cracker with a cost of $10. If people will increase the price of the cracker to $25, most people will stop buying the cracker.