The Rise of Prescription Drug Costs
In the USA, the prescription costs are not getting higher than before. Do you know why this is happening and what you can do about it? You will find the answers here.
Healthcare ‘s cost is getting more expensive. Th healthcare system has an area that keeps rising every time.
You need to know why these prescriptions so expensive so you can make a move about it.
Drugs are Now More Expensive
People are searching for cheaper drugs to heal their sickness and maintain their medications. And before we discuss why these medicines are too expensive to buy, it is good to show you the statistics first.
From May 2015 to May 2016, an article reported that the prescription drug costs had a 10% increase.
The escalation may look small but it has given already a big impact to the community.
These are the information that you need to know also:
Inflation increased 1% at the same time. The Food and booze prices also went up for 2.8%. An increase of 5.7% also happened to the price of clothing. The increase of the cost of the prescription drugs is definitely higher than the other basic needs.
The Reason why Drugs are Expensive
There are actually many reasons why drugs are getting more and more expensive.
Some may be correct or wrong.
Drugs are pricy because of these following reasons:
The Explanation the Industry
The pharmaceutical industry explains that they are making more better and effective drugs that is why these are already very expensive. The money and effort they spent should be returned. People are trying to understand this.
The Economy has a Reason
The aging and retiring baby boomer are not patients of healthcare services. Most people are using the same drug which makes the drug in demand. 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. Drugs are pricy because of the strong demand.
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 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. The price of the drug will stay on the top through this process.
The economics is the main concern of the second anti-industrial argument. The argument here is about the demand of the drug, being an inelastic good, wherein it should not affect the price.
A $10 cracker will be a perfect example to this. If people will increase the price of the cracker to $25, most people will stop buying the cracker.