Correlation between Risen Drug Costs and Insurance Companies

Correlation between Risen Drug Costs and Insurance Companies

Prescription drugs are supposed to treat ailments and improve a patient’s health. Unfortunately, this has become a farfetched goal as a result of risen drug costs. High drug prices have continued to be a widespread national debate as people ease up to point fingers at greedy individuals and organizations. However, it is not enough to condemn the pharmaceutical industry as the whole system, from the patients to the government, is to blame. A rise in the price of drugs impacts an individual or an organization either directly or indirectly. This essay examines the principal cause of skyrocketing drug prices, their impact on affected individuals, and proposes a control measure that could help manage the crisis.

Inflation in the cost of treatment will directly affect the cost of living in the country, self-insured individuals, and health insurance companies. With an increase in drug costs, companies are forced to increase the value of providing medical benefits to their clients and employees. Most pharmaceutical companies have already established controls that have continued to offset heightened costs. For example, their actions have surged insurance premium prices, promoted higher deductibles, and reduced the quality and level of service. Consequently, it has continued to affect individuals with a low-income status quo, including limiting them from accessing the appropriate health services.

Nevertheless, in assessing the underlying cause for a rise in drug costs, it should be noted that it is not related to the cost of research or innovation. Instead, the pharmaceutical industry focuses on fueling more profit. An increase in drug prices is intended to replace income lost from generic competition from older medications. The revenue lost is as a result of expired monopolies on the older medicines. Unfortunately, the new drugs in the market do not spawn enough income to substitute the loss. Subsequently, manufacturing companies introduce high prices on drugs that are under protective monopolies.

There are a few fortunate individuals insulated from the harsh cost of health care and medications, especially the wealthy. However, it is not the same for all patients. My father was diagnosed with juvenile diabetes at the age of four. Since then, he has struggled with purchasing the prescribed insulin and drugs due to the inflated drug prices. This is a simple illustration of the challenges low-income patients are going through to access medical care. Nonetheless, high drug prices have forced patients to skip and stop their prescriptions without consulting with their medical practitioners. This has contributed to the deteriorating health among the patients and the population in general. In my father’s case, highly-priced medications have threatened his access to proper care and medical services. Besides, hospitals and medical centers are limited to provide patients with the needed care due to a shortage of essential medications. In this case, the patient is at a disadvantage as they try to survive.

Conclusively highly-priced drugs harm society’s health and dramatically increases the struggles of low-income individuals. However, it will not hurt to take preventive measures. The pharmaceutical industry should establish value-based pricing policies. In this case, they should ensure that drug prices reflect the value of the drugs. Once a medicine has been released in the market, its price should not go up unless justified by inflation. This will not do much, but Iit will provide a platform to which the underlying cause of high prices will be dealt with.