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The U.S. pharmaceutical industry is facing a major challenge
in balancing innovation and affordability. On one hand, the industry must
continue to innovate and develop new drugs to meet the growing demand for
better healthcare. On the other hand, the high cost of prescription drugs
has become a significant financial burden for many Americans, especially the
uninsured. This essay explores the factors contributing to rising medication
costs in the U.S. and proposes possible solutions to address the issue.
According to experts, inflation is the main factor driving up the cost of
medication in the U.S. The general inflation rate in the country, which the
healthcare policy has failed to control, affects the prices of drugs in the
market. While drug utilization per individual, the volume of drugs consumed,
and the type and price of the drug itself also influence medication costs,
inflation is the major driver. The unchecked inflation rate has resulted in
the U.S. having higher prescription drug prices compared to other countries.
Many countries worldwide have implemented regulations on all companies
involved in pharmaceutical operations to protect citizens from harmful drug
impacts. In the U.S., the pharmaceutical industry should also be regulated
to ensure that citizens are protected from dangerous drugs. Regulations are
also necessary to prolong the process of allowing newly innovated
pharmaceuticals to the market. To ensure that such regulations are followed,
there should be a body responsible for regulating and overseeing the entire
pharmaceutical industry.
The uninsured in the U.S. pay more than 60 percent of the estimated value
paid by the federal government on all medication drugs. This is because the
uninsured lack representatives or have no one to negotiate the cost of
medication on their behalf. In contrast, the federal government negotiates
the cost of medication for the insured on their behalf, and they pay fewer
amounts than the uninsured. This disparity is a significant financial burden
for the uninsured, who often have to choose between buying medication or
paying for other necessities like food and shelter.
To reduce medication costs in the U.S., Congress should reform the entire
system responsible for innovation and competition. The current system does
not provide a proper balance of incentives for innovation while maintaining
biosimilar prices and practical generic competition. Rather than focusing
only on price regulation, Congress should link price concessions to
innovation-friendly policies while protecting the newly manufactured drugs
from monopolistic competition. This will encourage the pharmaceutical
industry to innovate and compete while ensuring that citizens can access
medication at affordable prices.
In conclusion, the U.S. pharmaceutical industry is facing a significant
challenge in balancing innovation and affordability. While inflation is the
main driver of rising medication costs, regulations, and policies aimed at
promoting innovation and competition are necessary to reduce the financial
burden on Americans, especially the uninsured. By reforming the system in
charge of innovation and competition, Congress can create a balanced and
sustainable pharmaceutical industry that benefits both the industry and
citizens. |
