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High Cost of Prescription Drugs

The United States is unique among industrial countries because it is the only country that fails to protect its citizens from discriminatory pricing of prescription drugs. For much too long, American pharmaceutical companies have been getting away with overcharging American citizens. Canada, France, the United Kingdom, Germany, Japan and Italy have all negotiated pricing with pharmaceutical companies on behalf of their citizens for lower prices for brand-name drugs. Due to the negotiated prices, the citizens in these countries pay significantly less for prescription drugs, which substantially reduces the total medical cost within these countries. Canada has established a Patent Medicine Price Review Board that enforces guidelines that determine the maximum prices which manufacturers can sell brand-name drugs. This review board has developed a pricing system for brand-name drugs that average between 35 percent to 40 percent below United States prices. In the United States, corporations, employees, and the economy are the affected stake holders. These groups are paying substantially higher fees for health care coverage than other countries and the increased costs are directly attributed to the higher price of prescription drugs. Health care cost is the fastest growing expenditure for many employers and businesses. The higher cost of premiums reduces the profits organizations are able to achieve; thereby, reducing the value of their stock. The higher medical premiums the insurers are demanding from the corporation are partially being passed on to the employees. Passing some of the additional premiums to the employees reduces their take home pay which equates to reduced savings and spending. The consumer confidence levels decline which also has a direct affect on the economy. There is also another correlation with the economy versus consumer spending. Because of the additional expenses employees are absorbing due to higher pre...

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High Cost of Prescription Drugs. (1969, December 31). In DirectEssays.com. Retrieved 21:47, September 01, 2014, from http://www.megaessays.com/viewpaper/1260.html