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. In this article, there are more answers as to why the drug rise in the United States might be an issue people will have to deal with for more years.
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. There are no control of the prices of medication by the government since the manufacturers have been given the rights to set their prices thuds taking advantage of the consumers. Prices can be held down if there are other people producing the same drugs as it makes firms to adjust trying to fit into the expectations of their customers and with just one or two firms, the prices keep on raising.
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. If the market is small the firms try to make money by shooting the prices since these medications are not purchased on an occasional basis. 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.
When a drug maker markets their products directly to a client, there are charges incurred, and those are recovered by raising the prices of these drugs. 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. It is possible for insurance companies to get cheaper prices sometimes and in other cases the manufacturers look for an alternative way to help individuals be in a position to pay for their medication.
If you want to get the medication at a lower cost, ensure there is an insurance company one is working with since they cater for most of the cost but also be ready to negotiate. They is why it is essential to choose the insurance company well since it is the determining factor of how much one will spend. 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.