A drug named Daraprim price was raised by 5000%, from $13.50 to $750 per pill. Many cases similar to Daraprim have happened, and a pattern of massive price increase of many life saving drugs by pharmaceutical companies becomes apparent. Expensive drugs had forced patients to make difficult choices, either to cut down basic needs to save money to buy the needed drugs, or to cut down the use of the drugs itself. Americans start blaming drug companies of price gouging and call for drug prices regulation by government. Drug companies, on the other hand, blame health insurance companies for shifting the cost of purchasing drugs to patients. To fix this issue of ridiculous skyrocketing prices on drugs, there must be regulation on the prices of drug
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However, the real problem recently is that they are jacking the prices, or doing multiple price increase multiple time a year. Johnson & Johnson raised its price on several top-selling drugs, such as Imbruvica for treating leukemia, Invokana for treating diabetes, Xarelto for blood anti-clotting. Other big companies including Amgen, Gilead, Celgene also hike their drugs list prices (Thomas Katie). List prices for drugs increases more than 12% in 2015, more than the increase of past 5 years combined. Many believe the drug cost increase is caused by the non-existent drug price regulations in the US to protect consumers from price gauging by drug companies. In the case like the drug Daraprim, …show more content…
The trend of drug price increase is accelerating and steep. Pharmaceutical companies can charge as much as they want since there is no whatsoever price regulation in the US. Medicare was forbid to negotiate drug prices, and FDA does not take pricing into account for drug approval. On the contrary, Government overseas like Canada, Australia and European countries has implemented some sort of price regulations or price negotiations and also conduct their own evaluation of the therapeutic benefits of the drug. This kind of intervention with drug companies clearly shows in the pricing. Denmark spends only 34 cents for each dollar spent on drug in the US. Lipitor costs $100 for a month supply in the U.S, and only $6 in New Zealand (Islam Ifrad). Skyrocketing drug prices negatively affect the whole healthcare system in the US. To protect their profit margin, hospitals will pass on the cost increase to insurance company, and insurance company will pass on the price hike to consumers by jacking up premiums and copays. Insurance company also restricts drug choice to treat medical conditions, forcing the patient to wait until their condition to get worse before approving a more expensive drug, which by that time treatment will become more costly and less effective. Insured patients, when hit by higher drug cost, will resource to unhealthy measure such as skipping doctor appointment, skipping medication doses. Uninsured patient must pay
However, the real problem recently is that they are jacking the prices, or doing multiple price increase multiple time a year. Johnson & Johnson raised its price on several top-selling drugs, such as Imbruvica for treating leukemia, Invokana for treating diabetes, Xarelto for blood anti-clotting. Other big companies including Amgen, Gilead, Celgene also hike their drugs list prices (Thomas Katie). List prices for drugs increases more than 12% in 2015, more than the increase of past 5 years combined. Many believe the drug cost increase is caused by the non-existent drug price regulations in the US to protect consumers from price gauging by drug companies. In the case like the drug Daraprim, …show more content…
The trend of drug price increase is accelerating and steep. Pharmaceutical companies can charge as much as they want since there is no whatsoever price regulation in the US. Medicare was forbid to negotiate drug prices, and FDA does not take pricing into account for drug approval. On the contrary, Government overseas like Canada, Australia and European countries has implemented some sort of price regulations or price negotiations and also conduct their own evaluation of the therapeutic benefits of the drug. This kind of intervention with drug companies clearly shows in the pricing. Denmark spends only 34 cents for each dollar spent on drug in the US. Lipitor costs $100 for a month supply in the U.S, and only $6 in New Zealand (Islam Ifrad). Skyrocketing drug prices negatively affect the whole healthcare system in the US. To protect their profit margin, hospitals will pass on the cost increase to insurance company, and insurance company will pass on the price hike to consumers by jacking up premiums and copays. Insurance company also restricts drug choice to treat medical conditions, forcing the patient to wait until their condition to get worse before approving a more expensive drug, which by that time treatment will become more costly and less effective. Insured patients, when hit by higher drug cost, will resource to unhealthy measure such as skipping doctor appointment, skipping medication doses. Uninsured patient must pay