Why Prescription drugs In The US Cost So Much

Prescription drugs are a crucial part of healthcare. It helps to save lives, treat illnesses, and manage symptoms. However, the high cost of prescription drugs can take a big chunk out of the monthly budget for most people in the US. It may hurt the people who are not able to afford good health insurance plans.

Despite drug costs playing a huge role in our daily life, we are aware of the functioning of the pharmaceutical market. It drives up already high drug prices and helps to save money on prescription costs.

Expensive prescription drugs

Here are a few reasons why prescription drugs are expensive:

1. Lack of price regulation

Drug manufacturers call the shots when we talk about how much American patients pay for their prescriptions. While the FDA regulates the testing of new drugs, they do not have any price control over medications.

2. Drug exclusivity protection

When a new drug is released in the market, it is placed under drug exclusivity and patent protection with patents that last for 20 years. Drug exclusivity means that other pharmaceutical companies can’t compete by developing generic drugs with similar effects.

3. Hike in the prices during supply chain

As insurance companies are putting the squeeze on consumers with an increase in health plans and monthly premiums, it doesn’t always cover brand-name drugs. The PBMs or Pharmacy benefit managers are responsible to manage the price negotiations with drug companies, insurance companies, pharmacies, and even the employees.

4. High administrative costs

The US has the unfortunate bragging rights that its citizens pay many times more for healthcare than people in the other high-income countries like Canada, the UK, France, and Sweden.

5. Limited market competition

There are fewer insurance companies in Canada and Europe that give them leverage over the pharmaceutical industry. They are free to reject high-priced drugs, so pharmaceutical companies must compete in the free market. The drug prices are more reasonable overall, and despite the pharmaceutical industry claims, lower prices do not affect drug development and research.

Conclusion

If you go for generic, it is sure that you can save on prescription costs. There are also a variety of other alternative methods that will help you find the best drug prices. However, another great way to save money is by comparing the Rx drug prices at different pharmacies. Few will charge less for particular medications, while others may offer lower dispensing fees.

You can head to Wiserx FREE prescription discount card for better discounts on medications.