The main reason as to why prescription drug prices are on the rise is because of the existence of monopoly rights given to researchers and manufacturers of those drugs by the government. It seems like firms have been getting away with this for years and benefiting by making massive profits throughout the 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. They are the same individuals who set the prices and the government has no control on how to regulate those prices. Due to the monopoly rights, there are no competitors and the thought that the company is the only one gives them the comfort.
The production and development of any drug is expensive since there are researchers involved whose charges are high thus the drug producers try to compensate their expenses by setting high 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. 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. In as much as insurance companies would want to negotiate for the drug prices to lower, they are on a fix and would be hard for them since the drug makers give them a take it or leave it option knowing there is no one else with the drug. 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.