According to a new study from Brigham and Women’s Hospital and Harvard Medical School the prescription drugs in the U.S cost too much because of the drug monopolies and restrictions on price negotiations.
Researchers wanted to understand why U.S. drug prices are so similar to other industrialized countries. To discover the reason, the authors of the study had to review medical and health policy literature from January 2005 to July 2016 and analyze articles approaching the source. Moreover, the justification and outcomes of drug prices in the U.S. were examined.
The U.S. surpassed 19 other industrialized nations when it comes to spending per capita on prescription drugs. In 2013, an average of $858 was paid for prescription medicines in the U.S which is more than twice what other industrialized countries spend.
They determined the most relevant factor that led to the high drug pricing is drug monopolies related to market exclusivity. It could indicate that a new medication will not be threatened on the marketplace by a generic drug for an established amount of time.
Dr. Aaron Kesselheim, research author and associate professor of medicine at Brigham and Women’s Hospital and Harvard Medical School explained that because this is a very complex issue, it is a problem that cannot be solved quickly.
New competitors must be introduced in the marketplace to make the prices drop. However, this is a difficult approach as certain common forms of new drugs are promised a period of five to seven years before a generic competitor can be sold.
Moreover, drug manufacturers can also obtain patents lasting more than 20 years for extraordinary inventions.
Common drugs such as a steroid inhaler for asthma costs about $35 in France in comparison to over $300 a month in the U.S. Also, insulin, a life-saving medication for diabetics, is about eight times more expensive here.
The different prices from the U.S and other countries are the effect of price controls which usually result in restricted access to medicines and fewer alternatives for patients.
In many countries, a delegate negotiates drug costs and will not cover stocks if cost-to-benefit calculations are irrational. However, in the U.S the bargaining power of the payer is constrained for various reasons.
Image source: Pixabay
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