Introduction
In the United States, the cost of drug prescription is one of the most debated topics compared to other developed nations. Eight in every ten Americans cite the high costs of drugs as the reason why they fill their prescriptions. Therefore, the paper is keen to identify why drug prescriptions are much higher compared to other wealthy nations, such that Americans pay 2.56 times higher compared to citizens of the developed world in Europe. Therefore, this research aims to uncover the issue of high-cost drug prescription and offer policy recommendations to make it cheaper.
Key Findings
The price of drug prescription is one of the leading causes of the high cost of healthcare services in the United States. The first reason for the high costs of drugs is the absence of government regulations, which gives manufacturers too much power to set prices (Rajkumar, 2020). The problem is made worse by the manufacturers’ patent rights and exclusivity, making it difficult for generic drugs to compete fairly in the market (Anderson et al., 2019).
Also, there needs to be comparative studies on pharmaceuticals, making it easier to find information on the safety of drugs. Yet, more information is required to compare brand names with others. These reasons have made the prices of medicines escalate faster compared to inflation.
Background
The persistence of high drug costs in the country results in challenges in the national budgetary allocations and worsens the existing problems in the US healthcare system (Anderson et al., 2019). High prices complicate the current challenge of many uninsured individuals in the country, placing more pressure on the healthcare system (Leonard et al., 2019). Previously, the government tried to change the tide, but many Americans still incur out-of-pocket expenses.
Methods
One way to solve this issue is to compare the US healthcare system with that of other developed countries. Therefore, the research will take a qualitative approach to identify how countries in the developed world, such as Europe, have managed to keep drug prices down. The comparison would locate where the US healthcare system is getting it wrong regarding practice and regulations, hence the price difference.
Results
The key finding is that Americans continue to pay high drug prices. Research shows that the cost of prescription drugs is 2.56 times higher than in other countries, while the cost of non-generic drugs is 3.44 times more inflated in the US than in other states (Prescription drug prices in the United States, 2021). The medication costs alone account for 8% of the healthcare budget, which could rise with time as manufacturers continue to enjoy the freedom to run the industry (Yabroff et al., 2019). The disparity witnessed in the prescription of drugs is based on the actual price and the amount consumed.
Conclusion and Policy Recommendations
Drug prescription costs are high, compounding other challenges in the healthcare system, such as an increased number of uninsured individuals. The comparison with other countries is a huge step towards finding a long-lasting solution to this policy issue. The first recommendation from the results is that the government should get more involved in setting drug prices to avoid exploitation by the manufacturers (Rajkumar, 2020). In Europe, this approach has worked, such that the EU regulates drug prices to ensure no overcharging of customers.
Secondly, the government should fund and encourage more research on generic drugs and provide comparison research, making finding alternative medications for particular health challenges easier. The US Congress should also enact laws to set the maximum profit markup by pharmaceutical companies to ensure fair prices and allocate funds for more research. Lastly, insurers should require drug manufacturers to develop cost-reducing measures for their products. Ultimately, reducing the cost of drugs requires industry-wide collaboration.
References
Anderson, G. F., Hussey, P., & Petrosyan, V. (2019). It’s still the prices, stupid: Why the US spends so much on health care, and a tribute to Uwe Reinhardt. Health Affairs, 38(1), 87-95. Web.
Leonard, E., Wascovich, M., Oskouei, S., Gurz, P., & Carpenter, D. (2019). Factors affecting health care provider knowledge and acceptance of biosimilar medicines: A systematic review. Journal of Managed Care & Specialty Pharmacy, 25(1), 102-112. Web.
Prescription drug prices in the United States are 2.56 times those in other countries. (2021). RAND Corporation. Web.
Rajkumar, V. S. (2020). The high cost of prescription drugs: causes and solutions. Blood Cancer Journal, 10(6), 71. Web.
Yabroff, K. R., Zhao, J., Han, X., & Zheng, Z. (2019). Prevalence and correlates of medical financial hardship in the USA. Journal of General Internal Medicine, 34, 1494-1502. Web.