Financing Issues Of Prescription Drugs

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Financing Issues in Prescription Drugs and the Ways to Establish Cost-Effective Strategy One of the biggest industries in the United States is healthcare industry, which accounts for over 17.5 percent of the Gross Domestic Product (GDP) of the country. This big representation of the nation’s economic activities impacts the overall economy. In other ways, it’s also impacted by the general economy. While the health care industry continues to grow, transformational changes also continue to enforce change in its organizational structure. Change in organizational structure enables health care providers to make arrangement for the change. In this case, the overall health care providers’ advance in new medical technology (to provide the best quality services), financial system, and the entire health care service structure, rules, and regulations are changed. Hence, a health care industry is fronting a noteworthy pressure to reduce health care cost, to prepare for an influential change in how health care is provided, financed and consumed while delivering the quality care (Hicks & Jacobs, 2014, pp. 385-402). Despite many financing methods in the United States, such as insurance premium, taxation, and out-of-pocket, there are still issues that challenge the government, the population, and individual in reimbursing the healthcare expenditure. One of the reasons in confronting such financing burden is the ultimate increase of health care
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