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Reasons As To Why Prescription Drug Prices Are On The Rise In The US

In the United States prescription drug prices are high since the government sort of gives researchers and manufacturers monopoly rights. Most of these firms have been in existence for quite some time, so it has been a profit-making industry for them at the expense of the citizens. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.

The monopoly laws put in place gives the producers of these drugs the upper hand since it is a law that has been in existence for over the years. Unlike other countries where government regulates the prices of medication, in the United States, the manufacturers are the individuals setting the prices thus making them expensive. Due to the monopoly rights, there are no competitors and the thought that the company is the only one gives them the comfort.

The production and development of any drug is expensive since there are researchers involved whose charges are high thus the drug producers try to compensate their expenses by setting high prices. If the market is small the firms try to make money by shooting the prices since these medications are not purchased on an occasional basis. When a firm gets a patent right of twenty years, that is a long time as compared to the way things work in other countries, and it is enough time for them to exploit the consumers.

Marketing is not a cheap affair since one must convenience their clients why their medication is better, and since the firms can sell to their clients directly after marketing, that is the way they compensate for the expenses. Most insurance companies has no negotiating power when it comes to these medications since they are at a risk of losing their insurance coverage of the medication. It is possible for insurance companies to get cheaper prices sometimes and in other cases the manufacturers look for an alternative way to help individuals be in a position to pay for their medication.

Negotiations can work in some pharmacies and if one gets lucky enough the company will accept to give them at a lower price. They is why it is essential to choose the insurance company well since it is the determining factor of how much one will spend. Look for alternative medication if the one you take on regular basis is high and a good pharmacist will assist you in that as long as one opens up to them instead of leaving.

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