Annotated Bibliography In the current pharmaceutical industry, drug prices are too high and have been a big problem. The drug Price Competition and Patent Term Restoration Act（Hatch-Waxman Act) make generic drug use easier to pass. Pharmaceutical companies have become dependent on overpricing their drugs in the United States. As we all know, healthcare has always been a big issue in the United States because of the medical expenses and medicines that make people unbearable with their soaring prices. Although most people have health insurance, there are many drugs and treatments that are not covered by insurance, making it difficult for lower income households to afford medical expenses. Many patients refuse treatment because of high medical …show more content…
Other countries' medical policies can provide good healthcare for their citizens. This is a difficult job to achieve in the U.S. medical profession. There are many pharmaceutical companies that chose to increase the price to obtain more benefits from the medicine and this is also their major source of income. During my research process, I found a policy which prevents the high price of the medicines, Federal law prohibits the Food and Drug Administration (FDA), from approving a copy of a new drug for a period of seven to 12 years even if there are no patents. The FDA is forbidden to approve generic drugs at any times and this policy that has encouraged many patent claims just to delay competition. All of the information shows everybody why the medicine prices have become higher. Ever since the Hatch-Waxman Act of 1984, it eased requirements for clinical testing of generic drugs which caused a high increase …show more content…
In 2015, when Martin Shkreli outraged lawmakers and the general public, as CEO of Turing Pharmaceuticals, he raised the price of Daraprim, it is the drugs used by AIDS and cancer patients, by 5000% overnight. Medicine prices are a big issue, although the country has price control, it does not solve the problem. Therefore, the policy may provide some short-term benefit, but it would impose substantial future costs. The purpose of this research paper is to understand why the pharmaceutical industry makes their drug prices so expensive. I will also find the appropriate information and laws to prove the reasons and solutions for the higher prices of drugs.
Scherer, FM, PhD. “Pricing, profits, and technological progress in the pharmaceutical industry.” The journal of economic perspectives : EP : a journal of the American Economic Association, 1993, Vol.7(3), pp.97-115. ProQuest, URL:
In the recent years the drug industry underwent a significant transformation. Many of the big companies generate high revenues, which allow them to expand. Some of them expand on their own others through mergers and the buying of smaller companies.
In some instances, the pharmaceutical industry in the United States misleads both the public and medical professionals by participating in acts of both deceptive marketing practices and bribery, and therefore does not act within the best interests of the consumers. In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the-counter, or OTC, drugs.
On a global scale, the United States is a relatively wealthy country of advanced industrialization. Unfortunately, the healthcare system is among the costliest, spending close to 18% of gross domestic product (GDP) towards funding healthcare (2011). No universal healthcare coverage is currently available. United States healthcare is currently funded through private, federal, state, and local sources. Coverage is provided privately and through the government and military. Nearly 85% of the U.S. population is covered to some extent, leaving a population of close to 48 million without any type of health insurance. Cost is the primary reason for lack of insurance and individuals foregoing medical care and use of prescription medications.
Yu, Winnie and Joel Hay. 1999. “Drug Patents and Prices: Can we Achieve Better Outcomes?” Measuring the Prices of Medical Treatments. Pages 27-28.
Why does not America do something about these rip-off companies? In 2001 George Bush promised to lower the amount spent on prescriptions for the citizens, but in 2002, Americans spent $162.4 billion on prescribed drugs. (Steele 47) Drugs prices are not likely to fall back down to what they were years ago. They fall into the same category as fuel prices for automobiles; they always increase. There are more pharmaceutical companies present in the U.S. than any other country in the world. Th...
Why are the prices so high? Some critics of the drug companies argue that the larger firms are ripping off the American public, are dishonest and, in some cases, unsafe. On the other hand, there are health care workers such as doctors and their supporters who claim that research and testing for drugs costs money. This supposedly justifies their prices for their products. Also, as an argument to their side, they say that their practice is a benefit to the improvement to mankind. It is a life saving business, but are these prices justified? As one can see, this is a very important issue in medicine today. It affects everyone involved with medicine, which is much of the American public. It also affects the physicians and drug makers.
One of the most prevalent and pervasive social issues in the United States today is the provision of equal access to health care for the impoverished. Far too many people live in conditions of poverty and struggle to find the means by which to meet their basic needs. For those without insurance, access to medical care is often preempted by other necessities. An unexpected medical expense can push this group further into poverty. Those who do have insurance may find themselves underinsured in the event of an emergency and unable to make the necessary co-payments. Alternatively, the insured’s provider may refuse to cover certain conditions. Besides the cost of adequate insurance and the booming cost of medical care, there are other factors that affect equal access to medical care for the impoverished. Among these are race, age, and geographic location. Poverty and the resulting inadequate medical care is a ubiquitous social problem that merits further discussion of the issue’s causes and implications.
The first social problem surrounding the health care system in the United States is the growing problem with pharmaceutical companies. The industry averages a 17% profit margin and it has been booming for decades, but the industry is being heavily led by a core group of companies (Dr. Pratt). “In 1992 the top 10 companies accounted for roughly one-third of global pharmaceutical revenue, after a period of consolidation, by 2001 the top 10 accounted for nearly half.”( Leon-Guerrero, Zentgraf, 172). These companies hold a large majority of the market share and make most of their money off patented drugs. This growing core of companies that are dominating the market are causing more problems rather than solving them. These companies are all about making as much money as they can and it shows through the salaries of the executives of these companies (Dr. Pratt). The pharmaceutical industry should have their number one priority be to the users of their products rather than profit gains.
It is hard to imagine life without health insurance. If you have any type of medical problem that requires attention, and you have appropriate health care insurance, you can be cared for in the finest of private hospitals. You can get great treatment and your ailments, depending on the severity, can be treated as soon as possible. Doctors, physicians and surgeons are willing to put out a big effort if they know that they are dealing with patients who are insured and have the money to go under extensive medical treatment. But imagine life without such luxuries. For example, what happens if a relative requires much needed surgery, but does not have health insurance to cover the procedure? What happens if a lack of medical insurance prevents you or your family from seeing a doctor, which could result in health problems that had not been identified but could have been treated before they became life threatening? These scenarios may seem far-fetched, but these types of situations happen to people who lack health coverage everyday. There is a true story about a patient who was insured and diagnosed with treatable cervical cancer. Unfortunately, she lost her job and with it her insurance. She was then unable to see her private doctor, and was turned away from other hospitals because ?cancer treatment is not considered an emergency in a patient who can?t pay? (?Help for D.C.?s Uninsured?). The woman later died at her home without ever being treated. This example raises the question, since when are people with less money less deserving of health care or appropriate treatment?
...rm debate. The Pharmaceutical Research and Manufacturers of America have lobbied against legislation to allow drugs from other nations into the United States. Prescription prices in America have increased beyond affordability and are hindering the health of the nation. Americans are forced to bear the burden of research costs and are being turned into deviants and white-collar criminals. By ridding the monopoly of the pharmaceutical companies and evening the prescription prices throughout the globe, the drastic increase in prescription prices can be prevented. Even just passing legislation that in fact allows Americans to decide their own fate when it comes to their prescription medications, would have a drastic impact on pharmaceutical pricing. After all isn't it the point of the government to stand up for its citizens and care more for them, not its business.
There are three issues when it comes to the health care cost rising. The first is the rising cost in prescription drugs. The second area of rising cost is the increased technologies when it comes to the medical industry. The third problem is the aging population. Prescription drugs are the area of the fastest growing health care expense, and it is projected to grow at 20 to 30 percent each year over the next several years. There are many newer, more expensive drugs on the market, and the use of these prescriptions is exploding. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works just as well.
In recent years’ health reform has been a driving force in the United States political system. If you watch the news, you will understand how citizens, the government, or the economy are or might be affected by some sort of change in medical regulation. One of these hot topic issues is the cost of prescription drugs. Every major drug market besides the United States regulates the price of drugs in some way (Abbott and Vernon). By the United States not doing so, many believe it opens consumers up to being exploited by large pharmaceutical companies.
Pharmacy appeals to me because of its potential to ease people’s physical and emotional suffering. The simple act of listening and being empathetic to the concerns of other’s health and wellbeing has inspired me to learn more about the profession. Perseverance in college followed by the biotech industry has provided me with the necessary research skills to be successful. The ever-changing pharmacy field would allow me to continue my education, culminating in an exciting career.
To help lessen the financial burden, certain people might have health insurance policies that take care of a portion of their medical costs. Nevertheless, there can still be significant out-of-pocket expenses like deductibles, copayments, and coinsurance. For those who lack insurance or have insufficient coverage, they are solely responsible for the entire cost of medical treatment, which can make it even more difficult to handle financially. Sometimes, people are faced with tough choices, like reducing important expenses, working extra jobs, or getting loans to pay for medical costs. This can impact their financial security and well-being in various ways.
Health insurance facilitates entry into the health care system. Uninsured people are less likely to receive medical care and more likely to have poor health. Many Americans are foregoing medical care because they cannot afford it, or are struggling to pay their medical bills. “Adults in the US are more likely to go without health care due to cost” (Schoen, Osborn, Squires, Doty, & Pierson, 2010) Many of the currently uninsured or underinsured are forced accept inferior plans with large out-of-pocket costs, or are not be able to afford coverage offered by private health insurers. This lack of adequate coverage makes it difficult for people to get the health care they need and can have a particularly serious impact on a person's health and stability.