Paper Topic:

High Cost of American Drugs

Running Head : HIGH COSTS OF AMERICAN DRUGS

High Costs of American Drugs (Name of Author (Name of University

Introduction

During the 2000 presidential campaign the high costs of prescription drugs became an important issue that has yet to be resolved by Congress and the president . Affordable health care continues to be a major social concern for the nation

Advances in medical science and technology undoubtedly contribute to prolonged life expectancy and expected maintenance of good health Extended life expectancy has created new problems for the current health-care system . The rapid

rise of chronic disease conditions is also associated with social and emotional problems . Discounted health insurance and government-subsidized health care have , in fact stimulated greater utilization of more expensive medical technologies which has resulted in higher health-care costs and the need for more medical subspecialist . The cost of health care in the US is currently one of the largest expenditures and is expected to account for an even greater share of projected national resources ADDIN EN .CITE LeeChi-Jen LeeLucia H LeeDevelopment and Evaluation of Drugs : From Laboratory Through Licensure to Market2nd2003Washington DCInforma Health Carehttp /books .google .com /books ?i d o1RP6-dUtr8C pg PA199 dq High costs of American drugs sig ObT2ddZNkZZNYlqkJJN0Ph8WeLM (Lee Lee , 2003

The use of lifestyle drugs dramatically increases the consumer intake of pharmaceuticals , and creates a great deal of controversy over which drugs should be covered by managed care and which should be paid for by the consumer alone ADDIN EN .CITE PlunkettJack W PlunkettPlunkett apos s Health Care Industry Almanac 2008 : Health Care Industry Market2007Hou ston , TexasPlunkett Research Ltd .http /books .google .com /books ?i d yv4Q0tItrNcC pg PT44 dq High costs of American prescription dr ugs sig smS69p9QNW3gof-W2KgwEihi1c0 (Plunkett , 2007

Drug Prices

Drug prices and profits are inextricably linked . The industry claim has been that its high prices in the United States are necessary to pay for the high costs of discovering new drugs , mainly carried out in the United States , and they in turn are necessary for the innovation that is the key to future health . We have said enough already to suggest that it is a weak claim . The last step needs to be taken : that of showing that the industry does not require the high American prices , to sustain either the American market or any other market in the developed world

Consider the following facts (or so we construe them . In the United States itself , institutional buyers of drugs are able to gain major discounts from pharmacy prices (up to 50 off manufacturers ' prices ) by buying in quantity and bargaining for what they buy . But their success in bargaining not only indicates power of market bargaining , but also makes clear that the industry has judged it can live with a lower profit prices paid for drugs in Europe and Canada . If it could not make a profit in those countries , or with many American institutional buyers why would it sell to them at all ? Because the American prices are so high , subsidizing...

8 pages

42.5 KB

Free sing-up