There has been a lot of talk in the media lately about drug prices. The prices for many drugs are on the rise and many insurance companies have started dropping drugs that were previously covered by their plans from their policies. What do you need to know about drug prices? Here are some facts you should know:
- Rising drug prices have very little (if anything) to do with increased potency of the drug. Many drug companies claim that the reason their prices continue to rise is because they are making the drugs more effective. Research shows, however, that even though the drugs are more expensive than they used to be, they are not actually any more effective than they once were.
- Drugs are priced based on what other drugs cost. Drugs are more likely to be priced based on what drug companies think insurance companies and the consumers themselves will be willing to pay for the drug. That means that they will often grossly overprice a drug if they think that the insurance will still cover it.
- Drug companies use their profits to innovate. While it is true that some profits are put towards making new drugs, many profits are also used to simply buy up rights to drugs that have already been on the market for a long time, change their names, and increase their prices, making it even more expensive for those who have bene taking a medication for a long time, to afford it in the long run. A study conducted by Bain, has discovered that most drug companies make 70% of their money selling drugs that they did not even develop.
- The average American spends more than $1000 on drugs each year. Many drug companies claim that they make up only 10% of all healthcare costs. The truth is, however, that most independent estimates put that percentage closer to twenty. Even if it is only ten percent, that is more than $400 billion a year, and more than $1000 per person, just on prescription drugs. Those numbers, compared to numbers from a decade ago, are ridiculous.
If you have questions about your drug plans or health insurance coverage, contact our experienced insurance agents in Manatee County, Florida by clicking here.
Sorry! The Author has not filled his profile.
