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Why are drug prices in the United States always so high? Uncover the hidden truth!
In the United States, prescription drug prices remain high, making them unaffordable for many people. Since the beginning of the 21st century, this topic has become a focus of widespread discussion, especially during the healthcare reform debate in 2009 and after 2015. Studies have shown that the high prices of prescription drugs in the United States compared to other countries are mainly due to the monopoly power exerted by the government in this health sector. The inability to effectively negotiate drug prices means that American taxpayers are actually subsidizing research and development in other countries around the world. expenditure.
Historical Background According to Peter Bach of the Sloan Kettering Center for Targeted Cancers and Stephen Pearson of the Institute for Clinical and Economic Review in Boston, drugs are the only industry where manufacturers can set prices with few constraints. Prices of major health care services. Since 2004, brand-name drug prices in the United States have been significantly higher than in countries with price controls, such as Canada, India and the United Kingdom.Prescription drug prices in the United States are 256% higher than in all 32 comparison countries, according to a comprehensive 2021 study.
In 2003, the Medicare Prescription Drug, Improvement, and Modernization Act, passed by a Republican-controlled Congress, created Medicare Part D, a large single-payer health insurance system that prohibits Medicare from negotiating drug prices. As a result, drug manufacturers in the United States are free to set their prices, resulting in uncontrolled price fluctuations for prescription drugs.
Try to repeal the negotiation ban
According to a February 2019 poll, 86% of Americans support allowing Medicare to negotiate drug prices. A similar survey published in 2021 also received 81% support, including 67% of Republicans and 97% of Democrats. Despite that support, Democrats twice passed bills to repeal the negotiation ban, but they were killed in the Republican-controlled Senate.
Negotiation of inflation reduction bill
With the passage of the Inflation Reduction Act of 2022, the U.S. Department of Health and Human Services will be able to begin negotiating prices for some prescription drugs. This move may provide a breakthrough in alleviating the ever-inflated drug prices, but whether it can truly reduce drug prices remains to be seen.
Over-the-counter and specialty drug prices skyrocketed
The sharp rise in drug prices, especially in the field of specialty drugs, has attracted widespread attention. Mylan, for example, increased the price of its EpiPen by nearly 400 percent between 2011 and 2016. Despite public outcry, prices for these specialty drugs remain high, placing severe financial strain on many patients who need them.
"The fundamental reason why drug prices are pushed up is that drug manufacturers want to maximize profits."
The impact of drug spending
Drug spending in the United States remains high, placing a burden not only on individuals financially but also on their health. Many patients choose not to take medications as directed by their doctors because they cannot afford the expensive prices, which can lead to more serious health problems.
Reducing Prescription Drug Compliance and Health Impacts
Multiple studies have shown that patients impacted by high drug prices tend to skip or reduce doses to save money. Patients in the United States discontinue prescriptions at more than double the rate of patients in other countries due to price, which has negative health consequences.
SummaryIn summary, high drug prices in the United States are caused by multiple factors, including the lack of effective pricing regulation, market monopoly, drug patents, and the profit drive of pharmaceutical companies. In the future, how to change this situation so that everyone can have access to affordable medicines will be a question worth pondering.
