Vinay Singh's Article on the Rise in the Price of Branded Drugs in the US

1030 Words Jan 7th, 2018 4 Pages
by Vinay Sigh. The implications of the price increase on Managed Health Care The article intentionally opens with a contrast between the drug price trend of the brand-name drugs and the generic ones. The general picture is painted as gloom since the cost of health care and in particular spending on drugs went up in 2011 by a significant 13.3% and was expected to rise further in the year 2012 if the manufactured of such brand-name drugs did not get any cheaper. The ill intention of the drug manufacturers is depicted in the comparison between the percentage increases they have inflicted on the consumers against the 2% inflation rate for the same period. The article then pins the annual drug spending of the nation at $314 billion for the year 2011, a whole 4% increase over the previous year. Vinay therefore implies that the clients choosing within the basket of brand-name drugs are paying much more higher prices than before as compared to those who may be making choices between the brand-name basket and the generic basket.

Effect of the rise The rise in drug prices will definitely affect the managed care across the nation and across all the three types of managed care plans. Managed care plans are often referred to as the plans from insurance companies that provide a contract with the medical facilities and health care providers for the members of these plan networks at a reduced price. The general trend is that the…

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