Prescription drug prices, especially in the United States, are high because of the government laws and regulations that protect the manufacturers and researchers to have monopoly rights. It seems like firms have been getting away with this for years and benefiting by making massive profits throughout the years. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.
The monopoly laws put in place gives the producers of these drugs the upper hand since it is a law that has been in existence for over the years. Unlike other countries where government regulates the prices of medication, in the United States, the manufacturers are the individuals setting the prices thus making them expensive. Prices can be held down if there are other people producing the same drugs as it makes firms to adjust trying to fit into the expectations of their customers and with just one or two firms, the prices keep on raising.
Research is expensive, and these companies invest in researchers to check if their drug is effective if it is new and sometimes that could take over a decade; therefore, they try to compensate by increasing the prices. If the market is small the firms try to make money by shooting the prices since these medications are not purchased on an occasional basis. Drug producers get patents when the medication is in testing phase and when one gets it could be for about twenty years which is a long time for medication to circulate and sell at high prices.
When a drug maker markets their products directly to a client, there are charges incurred, and those are recovered by raising the prices of these drugs. Most insurance companies has no negotiating power when it comes to these medications since they are at a risk of losing their insurance coverage of the medication. However, the good part is that insurance companies try to get the best for their clients but also manufacturers try to offer coupons so that one does not use a lot of money from their pocket.
Negotiations can work in some pharmacies and if one gets lucky enough the company will accept to give them at a lower price. When selecting an insurance plan, it should be covering the cost of medication one needs within a certain period and one can use their doctor’s help in picking the best insurance company. Look for alternative medication if the one you take on regular basis is high and a good pharmacist will assist you in that as long as one opens up to them instead of leaving.