Specialty Drugs Analysis
The High Cost of Specialty Drugs; a breakdown of American’s Health Insurance Plan’s article titled, Specialty Drugs; Issues and Challenges Through my analysis of an Issue Brief from American’s Health Insurance Plan titled Specialty drugs; issues and challenges, I became cognizant of the monopoly system that pharmaceutical companies are presently ascertaining in the United States. These companies are having breakthroughs in the way they handle chronic illnesses. Consequently, numerous of these breakthrough treatments derive from specialty drugs. With complex molecular structures, these specialty drugs are comprised of living organisms. Distinctive delivery and an upsurge in shipping expenses are also necessitated needs demanded by these drugs.
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Pharmaceutical companies dictate the market, and thus can choose whatever price they want to peddle their products at. In addition they have succeeded to find loopholes that are protected by government laws. Rother of NCHC points out in an article in the Washington Post (Swanson, 2015) that an additional key component is the nonexistence of drug price negotiation that the United States has. Not substantially adequate to warrant any leverage in negotiating drug prices, are the private insurers. On the other hand, Medicare attains enough leverage, but the government declines to assist in negotiations outside of theirs. As denoted by Rother, the United States is the only wealthy country that does not negotiate their drug prices (Swanson, 2015). What can be instigated to converse the current system set in place? In my opinion the emphasis should be on opening up the door to competition between the pharmaceutical companies. If we were to limit the exclusivity periods and allow for competing drugs and generic version to enter the market quicker than we would be diminishing the monopoly that some of these drug companies have been able to form. This would provide insurance companies more leverage and more momentum to reduce prices by means of encouraging generic versions or cheaper
Pharmaceutical companies dictate the market, and thus can choose whatever price they want to peddle their products at. In addition they have succeeded to find loopholes that are protected by government laws. Rother of NCHC points out in an article in the Washington Post (Swanson, 2015) that an additional key component is the nonexistence of drug price negotiation that the United States has. Not substantially adequate to warrant any leverage in negotiating drug prices, are the private insurers. On the other hand, Medicare attains enough leverage, but the government declines to assist in negotiations outside of theirs. As denoted by Rother, the United States is the only wealthy country that does not negotiate their drug prices (Swanson, 2015). What can be instigated to converse the current system set in place? In my opinion the emphasis should be on opening up the door to competition between the pharmaceutical companies. If we were to limit the exclusivity periods and allow for competing drugs and generic version to enter the market quicker than we would be diminishing the monopoly that some of these drug companies have been able to form. This would provide insurance companies more leverage and more momentum to reduce prices by means of encouraging generic versions or cheaper