The main reason as to why prescription drug prices are on the rise is because of the existence of monopoly rights given to researchers and manufacturers of those drugs by the government. It is as if these companies have been out there to make lots of profits through the society an issue that has been going on for years. In this article, there are more answers as to why the drug rise in the United States might be an issue people will have to deal with for more years.
If a company is the only producer of a particular drug, they will sell it at a higher price since they know one has no choice and that is how most American firms have been operating for years. They are the same individuals who set the prices and the government has no control on how to regulate those prices. Prices can be held down if there are other people producing the same drugs as it makes firms to adjust trying to fit into the expectations of their customers and with just one or two firms, the prices keep on raising.
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. Drug producers get patents when the medication is in testing phase and when one gets it could be for about twenty years which is a long time for medication to circulate and sell at high prices.
Manufacturers have the right to sell these drugs to their clients directly thus, any marketing costs incurred are compensated by the rise in buying. In as much as insurance companies would want to negotiate for the drug prices to lower, they are on a fix and would be hard for them since the drug makers give them a take it or leave it option knowing there is no one else with the drug. Both the manufacturers and the insurance companies want to make the drugs affordable but it also depends on the agreement between them.
However, there are ways to ensure one gets the drugs without spending too much like having an insurance cover and also be ready to negotiate for the prices when one walks into a pharmacy. 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. When one finds that their medication is expensive than planned, walking away is not a solution so one can ask for cheaper alternative that will still serve the purpose.