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. Most of these firms have been in existence for quite some time, so it has been a profit-making industry for them at the expense of the citizens. Prescription drug prices being on the rise might be a problem that individuals have to deal with for years and years to come due to these reasons.
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. They are the same individuals who set the prices and the government has no control on how to regulate those prices. When there is competition, the prices keep on fluctuating since a firm knows that clients will go for the one whose prices are cheaper and affordable.
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. When the market is small, the drugs are high for instance drugs made for cancer patients are used by a smaller group compared to diabetes. Patents given to these drug producers are long some lasting up to twenty years thus a new medication can end up being in the market for a long time without any competition.
Manufacturers have the right to sell these drugs to their clients directly thus, any marketing costs incurred are compensated by the rise in buying. Insurance companies are also unable to negotiate for the prices since they will not come across the same drug from a different country leaving them at crossroads. 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. When one finds that their medication is expensive than planned, walking away is not a solution so one can ask for cheaper alternative that will still serve the purpose.