Team B has chosen prescription drugs for our health care reform project and how our current economic status is influenced. We will give ideas and solutions to show how to decrease the drug pricing. Ways that can be implemented toward a solution. Pharmaceutical company’s need to amend their business practices from a high profit, low development model to a moderate profit, moderate to high development model. Structures and regulation that will explain the competition, barriers to entry, and regulations. Taking a look at drug pricing from different perspective, like cost, research, and development, marketing, and the manufacturing of pharmaceutical drugs.
The Monopoly of pricing who is involved, and the curves associated with it. Price discrimination how it changes who’s involved and what the criteria are for groups as well as pricing for individuals. How cost of co pays differ from brand names to generic and how the drug formulates come into play. How to make the system work for everyone that will amount to higher than just a 30-day supply, pharmacy assistance programs, local charity programs, and low income opportunities. Better ways to enforce existing legislation, vote in new legislation, and regulate prices across the board. The above affects the insured and non-insured American’s. For most American households, paying for health care to include prescription drugs and medical bills has been one of the hardest financial strains out there.
According to a report published by (Consumer Reports, 2012), many have cut back on other household expenses or taken potentially dangerous measures with their health to afford their medications. The most affected population is the working-age Americans who do not have prescription drug insurance coverage. More than half of the people who completed the survey requested by Consumer Reports took one or more prescriptions had to reduce other household expenses or make changes in how the general population manage their finances. These reductions included how much they spend on their groceries, entertainment, activities with the family, and using their credit cards to purchase medications. The problem was more severe with younger people than elderly people age 65 and older. “84 percent of them said they had to resort to such measures” (Consumer Reports, 2012) as previously listed. Prescription drugs or better yet the cost of prescription drugs is a discussion in the country of importance.
The rise of the cost of prescription drugs is of important to many people in the United States and plays a huge role in the economics of health care. The elevated pricing of prescription drugs has become a focal point of politics and in need of some governance. Even though healthcare and prescription drugs are seen as a private sector issue, the discussion of some socialist measures put into place is a definite need for the economy. Some of those ideas include price-capping expensive drugs and even importing drugs from Canada. Healthcare and prescription drugs have been privatized; however, the government has a huge influence on them both. According to the Centers for Medicaid and Medicare Services, the government, including state, and federal, has contributed more the 2.7 trillion in 2011. This shows that we have hidden, or more politically correct, blurred the view of a socialist healthcare system. The currently health care system with health care reform has caused confusing for consumers. Many people are struggling to pay for the high cost of medication they are on.
Some of the patients have to take a different type of medication, which is called alternative medication because their insurance denied paying for it in addition; the process to get approval from insurance takes longer time and more paperwork back and forth from doctors and insurance companies. In reality, health care consumers are the victims, they suffer from their medical illnesses, and they suffer for the high cost of prescription drugs. Health care reform in theory is helping more than forty million people to have health coverage, the demand curve shifts to the right. The important matter at the present time is the supply to cover that many people to have a quality care whereas the economy is gradually recovering. The unemployment rate is not changing much, it is still relatively high. When the prescription drug cost much of our income, seeking for other solution becomes a must do from consumers, they tend to dismiss their prescriptions or buying medication from online market, which may cause bad health than curing purpose.