In the United States prescription drug prices are high since the government sort of gives researchers and manufacturers monopoly rights. It is as if these companies have been out there to make lots of profits through the society an issue that has been going on for years. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.
If a company is the only producer of a particular drug, they will sell it at a higher price since they know one has no choice and that is how most American firms have been operating for 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. 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.
Before a new medication is brought to the market, it has to go through the necessary check to ensure it will be effective and all that requires a lot of money so when the medication is released to the market, the prices are higher. 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. When a firm gets a patent right of twenty years, that is a long time as compared to the way things work in other countries, and it is enough time for them to exploit the consumers.
Marketing is not a cheap affair since one must convenience their clients why their medication is better, and since the firms can sell to their clients directly after marketing, that is the way they compensate for the expenses. 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. Both the manufacturers and the insurance companies want to make the drugs affordable but it also depends on the agreement between them.
However, there are ways to ensure one gets the drugs without spending too much like having an insurance cover and also be ready to negotiate for the prices when one walks into a pharmacy. 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. There is always an alternative and if one finds their drugs are expensive, ask the pharmacist if there are other drugs they can recommend you use provided they will not have negative impacts on you.