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Drug Price Regulation
The United States is a country that values life, and one of the ways we express this is the premium we place on healthcare. However, statistics have shown that the price of prescription drugs -- an important component of healthcare -- have risen dramatically. The average prescription price has doubled in the last 10 years alone.
This paper argues that the government should step in and regulate the prices of prescription drugs. It discusses three important reasons why such regulation would be applicable only to the drug industry and would not interfere with the country's free market economics.
First, much of the mark-up for prescription drugs do not come from research and development costs. Instead, as author Patricia Barry states, "drugmakers spend billions reaching consumers and doctors" (Barry 2002). The high price of advertising and giving out free samples is then passed to the consumers.
Secondly, the government is in a position to negotiate lower prices with drug companies. Most other advanced industrialized countries around the world currently do so. However, because of political lobbying, Congress has yet to take advantage of Medicaid and Medicare consumer base and demand lower drug prices.
Finally, those who argue that drug price regulation would curtail free market economics should remember that the government publicly funds much of the research that goes into the development of drugs (Barry 2004). The National Institutes of Health funds research in many universities. It is this taxpayer-funded research that forms the basis for many of the drugs developed by the pharmaceutical industry. Thus, it is only fair that the government should have a say in ensuring that these drugs are affordable for the greater segment of its population.
Works Cited
Barry, P. (2004). Ads, promotions drive up drug costs. retrieved Oct 25, 2004, from AARP Bulletin Online Web site: http://www.aarp.org/bulletin/medicare/Articles/a2003-06-23-adspromotions.html.
Barry, P. (2004). The dope on drugmakers. retrieved Oct 25, 2004, from AARP Bulletin Online Web site: http://www.aarp.org/bulletin/prescription/Articles/a2004-09-13-drugmakersdope.html.
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