High Cost of Prescription Drugs

Length: 4 Pages 879 Words

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 dru Continue...

The consumer confidence levels decline which also has a direct affect on the economy. If the pharmaceutical companies want to do the "Greatest Good for the Greatest Numbers they should incorporate the Canadian pricing strategies. Their products are safe as long as they are administered per the stated directions and, as such, they comply with compensatory justice. The pricing guidelines developed in Canada could be easily applied, resulting in consumers spending less on prescriptions, and potentially using the savings to purchase other goods that would stimulate the economy. Although this process would decrease their revenue, it would give the greatest benefit with the least harm. Should the pharmaceutical companies develop pricing strategies similar to what has been used in other countries that have instituted price controls In regards to the Judeo-Christian principles, the pharmaceutical industries' priority is to achieve a material gain without regard to the consumer. The ethical solution for this industry is to incorporate a fair pricing strategy. They have not told the American public the truth in regards to the quality of products imported to the United States from Canada. The strategy would be very similar to the program developed in Canada for the Patent Medicine Price Review Board. Passing some of the additional premiums to the employees reduces their take home pay which equates to reduced savings and spending. The pharmaceutical industry shows no empathy towards the general pubic because they will not reduce their pricing to make it more affordable to the US consumer. The pharmaceutical industry meets the right of contractual justice because they comply with production quality stands outlined by the FDA. Health care cost is the fastest growing expenditure for many employers and businesses. The higher medical premiums the insurers are demanding from the corporation are partially being passed on to the employees.