Prescription Drug Costs are Getting Expensive
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. 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.
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 increase may look deceivingly little but it is already very big.
See these information for yourself:
Inflation increased 1% at the same time. The Food and booze prices also went up for 2.8%. The price of clothing increased to 5.7%. 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
Drugs are very expensive for many different reasons which you need to understand.
But nothing still is for sure.
These are the most popular reasons why drugs are very expensive:
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. The thing is many are affected by this process.
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. 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.
There are Anti-Industrial Arguments
Most governments implement a grace period for a certain new drug to be on the market without having competitors. This is one way of making quality medicine, according to them.
However, for the past few years companies are practicing ‘evergreening’. 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 that a drug is an inelastic good that should not affect the price that much if it is in demand.
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.