Short Course on Drugstores – Getting to Square 1

The Rise of Prescription Drug Costs

In the USA, the prescription costs are not getting higher than before. Do you know why this is happening and what you can do about it? You will know why today.

Healthcare costs so much these days. Th healthcare system has an area that keeps rising every time.

You need to know why these prescriptions so expensive so you can make a move about it.

No Drug is Cheap These Days

People are searching for cheaper drugs to heal their sickness and maintain their medications. You should see the statistics in the recent years before you can have the answer of why these medicines are so costly.

The price of prescribed drugs escalated for about 10% last May 2015 to May 2016.

The increase may look deceivingly little but it is already very big.

But consider this:

Inflation increased 1% at the same time. The Food and booze prices also went up for 2.8%. The price of clothing increased to 5.7%. The rise of the prices of the other basic needs has no match to the rise of the cost of prescribed drugs.

The Reason why Drugs are Expensive

There are actually many reasons why drugs are getting more and more expensive.

But nothing still is for sure.

Drugs are pricy because of these following reasons:

First is the Industry Explanation

The pharmaceutical industry defends that they are producing drugs of very good quality already which means these are worthy to be very pricy, too. They are giving astounding services so it means they deserve good returns. Many do not understand this process.

The Reason of the Economy

Since baby boomers are now retiring and aging, healthcare services have more people to cater. The demand of a certain drug increases since a lot of pensioners are using it. If the demand is good then the price will go up, too.

These patients are already maintaining drugs which make these in demand. Now you know why drugs are very pricy already.

Take Note of These Anti-Industrial Arguments

Most governments implement a grace period for a certain new drug to be on the market without having competitors. This is said to make companies make more quality medicine.

Companies are conducting ‘evergreening’ in the past few years. They make only little changes to their drugs. The price of the drug will stay on the top through this process.

The economics is the main concern of the second anti-industrial argument. The argument here is that a drug is an inelastic good that should not affect the price that much if it is in demand.

Imagine a $10 cracker for this one. No one will definitely eat a cracker costing $25 if they are going to increase the price.