The Market For Generic Drugs

The prices of prescription drugs in the United States are by far the highest in the world. [1] On average, Europeans pay 40% less than Americans for the same medications. [2] Consumers have been resorting to several ways, sometimes putting themselves in harm’s way, to alleviate the burden of high prescription drug costs. Some buy their medications online or cross the borders to neighboring countries so they would be able to afford buying their needed medications. Others have resorted to the illegal act of selling their unused medications in online forums just to recover part of their expenses. Many factors contribute to the increased drug prices in the United States including research and

Finally, in a February 2012 proposed regulation, CMS proposed that state Medicaid agencies reimburse pharmacies for retail drugs based on actual acquisition cost. CMS recognized, however, that states may not be able to determine the actual price paid by a pharmacy for a drug billed to Medicaid, so it suggested that states survey pharmacies or rely on other data to calculate an average acquisition cost for drugs purchased and billed by retail community pharmacies. The article reviewed the association between benefit caps, prescription drug use, and the costs associated. It also detailed drug cost sharing, additional medical costs, and specific health outcomes. Using observational data, the studies analyzed the changes and did a cost comparison of outcomes at two points of time, before and after the pharmaceutical benefits changed. The article detailed the impact of pharmaceutical drugs was often difficult to analyze because some data analyzed utilization while others analyzed actual pharmaceutical spending. The data surrounding utilization compared as many as five factors such proportion

Shortages of prescription drugs in the United States are a serious threat to our nation’s health and safety. At first blush, this problem appears fairly simple and straight forward to solve. In reality, there is a complex web of causation with a number of root causes contributing to drug shortages. The aim of this paper is to answer the question: How do we mitigate prescription drug shortages? This discussion is written from the standpoint of advising the current presidential administration how to address this crisis. This essay begins with a discussion regarding the background of the issue. Next, the landscape, including stakeholders in this matter is identified. Following, political, social, economic, and practical factors surrounding

It just seems crooked. Now whenever an elderly man or woman goes to a pharmacy to pick up prescriptions, it is going to be too expensive. Ordinarily, Pharmacies would try and reduce the price of the drugs. The store would try and see if there was a similar one like the drug and just have the person pay for that one or contact the insurance company and have the insurance cover the drug. Consequently, people just cannot pay for the drug by itself. Now, people pay both the insurance company and pharmacy just for one prescription drug that may not be worth the cost. For example, Tolterodine (Detrol, Detrol LA). Tolterodine, or Detrol, is a prescription drug used to help and control the

In response to a loss of revenue from Medicare Part D prescription drug payments, drug manufacturers may increase the cost of pharmaceuticals elsewhere, such as the private sector. This escalation in prescription drug prices could result in the price of different insurance policies to increase as well, placing a greater burden on private insurance holders. Specific, quantifiable predictions regarding possible payment increases for privately insured individuals have not been as well-established as has the overall trend of a probable increase in these costs.

Under the existing federal Medicaid pharmacy benefit program, fee-for-service reimbursement rates for prescription drugs are based on the actual invoice cost of prescription drugs plus a reasonable professional dispensing fee. Any federal reforms to Medicaid which would allow states to set Medicaid pharmacy reimbursement rates below actual drug acquisition costs could seriously jeopardize Medicaid patient access to Medicaid drugs. Whether in a Medicaid managed care or fee-for-service setting, a Medicaid program that reimburses below actual drug costs raises a barrier that may limit or eliminate access points for patients to utilize their Medicaid drug benefits. Even with a cost-based drug reimbursement floor, Medicaid programs can fully avoid patient access barriers only through the addition of adequate dispensing fees that are more reflective of the cost to provide healthcare services in the

In 2010, the Affordable Care Act created a $250 rebate if the Medicare beneficiary was in the coverage gap. It also expanded coverage to the discounts given on brand name prescriptions. With reforms and improvement comes disadvantage to others. Beneficiaries and patients will be able to start saving more money, but it comes with a decline for the drug providers. According to Health Capital Consultants, “over ten years, closing the coverage gap may ultimately cost approximately $32 billion” and the pharmaceutical industry will be forced to take on most of this burden. These companies are paying for the flexibility they’re been given by MMA. They can “set their premiums, design their own formularies and are free to use cost management tools” and Medicare will reimburse plans for a “share of their drug costs.” (Guterman & Huynh ,

The Medicare beneficiaries’ contribution to the coverage gap decreases each year, with the majority of cost absorbed by the government and the drug manufacturers. Drug manufacturers also agreed to pay a fee to the federal government health care programs on branded prescription drugs (BPD), based on its sales of BPD’s. There was an expansion of the Public Health Service Act (PHSA), that required drug manufactures to provide eligible entities with significantly reduced drug price. The PHSA, also expanded those entities such as free-standing cancer centers and critical access hospitals (CAH), that were eligible to participate in the 340B program In, addition they also agreed to increase rebates on sales of prescription drugs to the Medicaid program (Spats, 2010). The rebate was increased from 15.1 percent to 23.1 percent. In addition, drugs, such as those used for pediatric care and clotting factor drugs there was a 17.1% rebate. Perhaps, most importantly, the firms extended the rebates to Medicaid patients enrolled in Managed Care Organizations (MCO). This new agreement allows plans to negotiate rebates in addition to the new ones

Prescription drug prices are on the rise in the United States. Currently, the United States does not implement a price control on prescription drugs. Every day the supply and demand for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for survival. Therefore, it is necessary for research and development to continue in the United States. Those suffering the effects of exorbitant prices must do so until a generic form of a prescription drug is produced. Once approved by the FDA, new drugs will make their appearance on the market and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical companies to price their drugs based on the idea of supply and demand. This produces the profit used to fund research. Price controls discourage innovation. If a price control were set in place, of course the price of prescription drugs would decrease. However, the development of new drugs decreases with it. Today’s generation would benefit from lower prices, while future generations would suffer from the loss of drug innovation.

Part D decreases their out of pocket expenses for prescription drugs for a lot of people. Therefore, a great decrease is recognized by patients with extremely high annual expenses for prescription medication. Though, Part D cost patients with low income more then what they previously paid to its adoption when state Medicaid programs covered them. The legislation that established Part D forbids Medicare from negotiating lower prices with drug manufacturers. As a result of an increase in costs of prescription medications frequently passed to the benefit recipients (Mathews, 2006). The legislation are groups that influenced the final outcome of Medicare Part D.

Recently, there had been a controversy over the rise in pharmaceutical costs involving the EpiPen in the United States. The EpiPen, also known as adrenaline/epinephrine, is a widely used injection that is used to treat allergic reactions. This generic drug has been available for many years. The EpiPen controversy is a prime example of how monopoly

The rise in costs of prescription medicines affects all sectors of the health care industry, including private insurers, public programs, and patients. Spending on prescription drugs continues to be an important health care concern, particularly in light of rising pharmaceutical costs, the aging population, and increased use of costly specialty drugs. In recent history, increases in prescription drug costs have outpaced other categories of health care spending, rising rapidly throughout the latter half of the 1990s and early 2000s. (Kaiseredu.org, 2012).

Many people see the drug price increases made by Martin Shkreli of Turing Pharmaceuticals of the toxoplasmosis drug Daraprim by 5000%, or, the EpiPen’s 400% price hikes as being immoral, unnecessary, and just price gouging, but others and I argue that the increases are well justified and really not detrimental to consumers. Dr. Nitin Damle of the American College of Physicians had this to say on the matter to members of congress, “The research, development, regulatory, and payment systems for prescription medication are deeply intertwined, and the pressing issue of drug pricing and payment will require comprehensive efforts not only by Congress,

As a nurse leader, what I could do now is suggest for our transplant program to prescribe generic medications. This is a commitment to STEEEP™ care. When the patient is first transplanted at the BSWH-AS, he/she is started on the hospital formulary, which is generic. The patient is discharged on medications ordered from Courtyard Pharmacy which uses the same distributer and manufacturer. Most commercial insurance companies charge a higher co-pay for brand. Medicare prefers generic medications. With the co-pays being so high and insurance companies being so restrictive, the prescriber is forced to go with generic.

Pricing regulations have been implemented within the pharmaceutical industry in South Africa to ensure improved access to healthcare. The implementation of the Single Exit Price (SEP) effectively meant that the private pharmaceutical sector had to adjust from a free to a regulated market, where prices had to be cut and discounts discarded. The pricing structure changed to a transparent