Effects Of Prescription Drugs On The United States Essay

751 Words Oct 18th, 2015 4 Pages
In society, consumers purchase insurance for various reasons, mainly for unexpected health issues. Although, this is not always the case. Many consumers purchase insurance based on the prescription drug benefits. The influence of health insurance on prescription drugs, continues to be a major issue in the United States. There is no easy approach to resolve this issue, which is impacting many individuals and the United States health care system itself. Most of society has believed, that pharmaceutical companies are the subject to this ongoing issue. In fact, pharmaceutical companies continue setting high prices for prescription drugs.
In the past, there has been little economic research on the demand for pharmaceutical addresses markets where there are no generic equivalents for branded drugs (Esposito, 2006). However, copayments for drugs in the United States were not differentiated among products other than generic and brand name drugs until the early 1990’s (Esposito, 2006). Prior to this time, insured individuals paid a fixed cost for prescriptions that were not generic. Nowadays, pharmaceutical companies and insurers basically bargain with each other to determine copayments and benefits of prescription drugs. As a result, this had led to concerns to prescription drug usage, and managing differentiating copayments among alternatives and substitutes. An alternative solution would be, to continue conducting more research on prescription drug utilization. By conducting…

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