Universal Prescription Drug Prices: A Case Study

With the United States being the only country allowing a free market to determine drug prices, it has the potential for some companies to take advantage of it. Other European countries such as Germany, Sweden, France, and the United Kingdom have set government regulations on the prices of drugs and expenditures (Gross, D. J., Ratner, J., Perez, J., & Glavin, S. L.,1994). This set regulation prevents companies from price gouging, and these regulations are also due to their universal prescription drug benefits.“ A recent study by the U.S. Department of Commerce reviewed pricing in 11 OECD (Organization for Economic Cooperation and Development) countries and found that, for patented drugs that were best sellers in the United States, the prices in other OECD countries were 18 to 67 percent less than U.S. prices, depending on the country.”(Sood, N., De Vries, H., Gutierrez, I., Lakdawalla, D., & Goldman, D., 2009). With the United States being the world’s leader is drug development, they are also the world’s leader in drug prices with their free market system (Gross, D. J., Ratner, J., Perez, J., & Glavin, S. L., 1994).

Even though their price raised about 500% there is still no law to bring them to court since the pharmaceutical side of business is allowed to increase the price as much as they want. Most states however, have their own price gouging regulations under their own state law. Although some of these state specifically state as to which product is not allowed to price gouge, some states like Virginia on any necessary goods and services (Gilberson, 2012). Having about 35 states create regulations about price gouging prove this influx in price is a huge issue when it comes to the American public’s necessities in which all people should be able to