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Uphill Struggle: How to Lower Prescription Drug Costs in the US

January 13, 2025Health4221
Uphill Struggle: How to Lower Prescription Drug Costs in the US The Un

Uphill Struggle: How to Lower Prescription Drug Costs in the US

The United States faces a significant challenge in reducing the cost of prescription drugs, a problem exacerbated by the political climate and entrenched interests. To address this issue, it is essential to embrace policies that have been successfully implemented in other developed nations, such as European countries and Canada.

Why Change is Needed

Currently, the US healthcare system relies heavily on brand-name medications, which are generally priced exorbitantly, accounting for over 10% of healthcare costs. In many cases, the costliest medications consumers pay for are those still under patent.

The high cost of prescription drugs in the US has become a major issue for both individuals and the government. For instance, a medication might cost $600 in the US but only $5 in the UK, despite both being manufactured by the same US company. This discrepancy is troubling and highlights the need for reform.

Creating a Universal Healthcare System

One approach that could help is to establish a universal healthcare system, similar to that employed in other developed nations. Such a system can negotiate lower prices with pharmaceutical companies. By doing so, the government can ensure that prescription drugs are affordable for all citizens.

To effectively regulate drug prices, the US can consider a framework that establishes that medicines cannot cost more than 20% higher than the average cost in select countries. For instance, if the average cost in Mexico, Canada, Germany, Great Britain, Colombia, Brazil, South Korea, India, South Africa, and Zimbabwe is $50, the same medication in the US should cost no more than $60. By bringing in such measures, the US can help to curb drug prices and ensure affordability.

Addressing Legal Costs

The high cost of prescription drugs is often driven by punitive legal systems that increase healthcare costs. Litigation and legal costs are built into the overall expense of treatments, effectively driving up prices.

One proposal involves including medical malpractice tort reform in legislative measures. Medical malpractice reform can help reduce the costs associated with defensive medicine, where doctors prescribe costly treatments not necessarily required due to the fear of potential lawsuits. This can lead to significant savings in healthcare spending.

Collective Bargaining and Generic Medication

Another approach involves enabling collective bargaining within the healthcare system to negotiate fair prices for medications. This could also include the production of generic copies of brand-name medications, such as insulin, as seen in California.

While California’s efforts to manufacture generic insulin copies are commendable, this approach may not be as efficient or cost-effective in smaller states. Instead, leveraging collective bargaining power can bring down medication costs without the need for complex manufacturing processes.

Conclusion

The high cost of prescription drugs in the US is a complex issue that requires political will and bold reform. By adopting policies that have proven successful in other developed nations, the US can begin to address the affordability crisis in healthcare. Negotiating lower drug prices and implementing medical malpractice tort reform are crucial steps toward achieving more affordable healthcare.

Only through these measures can the US healthcare system become more equitable and accessible for all Americans.