In the article, “The Soaring Cost of a Simple Breath”, readers are presented with the high-costs of asthma inhalers. Asthma is the most common chronic disease that affects around 40 million Americans and it is common knowledge that asthma is very controllable with drugs. In the United States, obtaining these drugs at fair costs is nearly impossible and requires the best insurance or tons of disposable income. Author Elizabeth Rosenthal meets with an upper-middle class family to understand the financial impact of these easy-to-make drugs. Pulmicort is a steroid inhaler that retails for over $175 dollars in the United States, it retails for $20 dollars in the Britain and is also dispensed to asthma patients free of charge. Even simple inhalers such as nasal sprays are $250 in the U.S. while the cost for Europeans is around $7.
Even with the insane costs of on-brand medicines, the United States is also dealing with rising costs of generic medicines. Generic Augmentin, a very common antibiotic, retails up to $120 for a 10-day prescription and the generic version of Adderall costs up to $150 per month. It’s also important to note that generics don't’ even exist for some medical conditions, including asthma. Generics increased in price at an average of 5.3% with brand-name medicines skyrocketing over 25% in 2012.
Every developed nation in the world has either direct or indirect government influence on the price of national wholesale price for each drug, while the United States leaves all of the prices up to competition in the free market. “Competition in the free market” is complete coded language in today’s health care arena. An incredible amount of lifesaving drugs is made by only one manufacturer and businesses can only slightly blunt market forces. The patent system in the United States allows for pharmaceutical companies to reign over the prices of their drugs. The repatening of older drugs (birth control, insulin and colchicine) is a way to charge exorbitant prices for drugs that once cost pennies. Besides repatening, pharmaceutical companies also gouge patients by choosing to sell drugs via prescription rather than over the counter, so that the insurers are forced to cover a price tag that would be considered unacceptable for customers to cover on their own. This article sheds light on the complete necessity of government intervention in the healthcare “industry.” It won’t be an easy battle considering that over $250 million was spent on pharmaceutical and healthcare lobbying in 2012.
I agree with you but think that the problem expands beyond the US bureaucracy...
ReplyDeleteAlthough there are a number of generic drugs for all the name brand prescriptions on the market, American patients are unable to get these generic medications due to corporate greed and maneuvering. According to the NY Times article, Paying Til It Hurts, the FDA has set such high standards for prescription drug approval that there’s “no clear pathway for generics” (Rosenthal). In addition, patents, which are administered based on safety and efficacy, are easy for pharmaceutical companies to obtain. Prescription drugs are not evaluated based on patient access, affordability or need, creating a competitive environment where pharmaceutical corporations compete to manufacture the most expensive product. This ethical dilemma can be observed in a number of modern American companies. For example, Merck’s revenues dropped 50% when the patent for their brand-named asthma medication, Singulair, expired. The author continues to note that the American pharmaceutical industry has shifted its focus from research and production of drugs that address simple, everyday illnesses to high-priced complex drugs that are designed for small populations.
From another perspective, due to the competitive nature of the industry, “...drug companies spend far more on marketing and sales than the 15 percent and 20 percent of their revenues that they devote to research and development.” American companies are too focused on advertising and marketing and less focused on developing newer drugs and treatments. The priority for these corporations is centered around revenue when it should be centered around the number of people who can get access to the drugs they need. Until the US government intervenes and imposes the proper restrictions and regulations, the American consumer will be paying tooth and nail for their daily dose of Lipitor.
Excellent discussion! You make good points about drug companies. The argument often heard is that they need to raise prices to pay for R&D, but many studies have shown this is not based on fact. So, what is that, an alternative fact, or a lie?
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