In the United States prescription drug prices are high since the government sort of gives researchers and manufacturers monopoly rights. It seems like firms have been getting away with this for years and benefiting by making massive profits throughout the years. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.
The country has a system that allows manufacturers to be the sole producers of drugs as a way of increasing innovation and growth in the country. Unlike other countries where government regulates the prices of medication, in the United States, the manufacturers are the individuals setting the prices thus making them expensive. Due to the monopoly rights, there are no competitors and the thought that the company is the only one gives them the comfort.
Before a new medication is brought to the market, it has to go through the necessary check to ensure it will be effective and all that requires a lot of money so when the medication is released to the market, the prices are higher. If the market is small the firms try to make money by shooting the prices since these medications are not purchased on an occasional basis. Patents given to these drug producers are long some lasting up to twenty years thus a new medication can end up being in the market for a long time without any competition.
Marketing is not a cheap affair since one must convenience their clients why their medication is better, and since the firms can sell to their clients directly after marketing, that is the way they compensate for the expenses. Insurance companies are also unable to negotiate for the prices since they will not come across the same drug from a different country leaving them at crossroads. It is possible for insurance companies to get cheaper prices sometimes and in other cases the manufacturers look for an alternative way to help individuals be in a position to pay for their medication.
Negotiations can work in some pharmacies and if one gets lucky enough the company will accept to give them at a lower price. An insurance company is a long-term goal therefore take your time before picking a company but make sure it covers the drugs you need to avoid any issues later since it is the best option to cater for your medication. Look for alternative medication if the one you take on regular basis is high and a good pharmacist will assist you in that as long as one opens up to them instead of leaving.