Why Are Drug Prices so High?

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http://www.mercola.com/2003/jul/9/drug_prices.htm

 

Why Are Drug Prices so High?

 

 

By Dr. Joseph Mercola

with Rachael Droege

 

 

 

The population is aging, prescription drug use has seen a sharp increase, and

new drugs with exorbitant price tags are continually being added to the market.

The result? Americans are being prescribed a steady stream of expensive

prescription drugs that they can’t afford, and the drug prices are so high that

they are threatening to break the health care budget.

 

 

 

The reasons why drug prices are growing ever higher may surprise you. Drug

companies spend billions on research and development, but they now spend even

more on marketing their drugs. And they rake in huge profits--about 30 percent a

year for the largest drug manufacturers.

 

 

 

In fact, drug pricing has nothing to do with costs. The prices are negotiated in

secret and the outcome is based largely on the bargaining power of a particular

country or health plan. This means that when drugs are sold to consumers, there

is not usually one set price. Prices vary from very low to very high and the

price you are charged depends on a number of factors, including the country in

which you reside and whether or not you have health insurance. Americans without

health insurance, who are often in low-income brackets, are often charged the

most.

 

 

 

Drug companies have the upper hand in negotiating prices, largely because there

are currently no scientific standards for analyzing the cost-effectiveness of

new drugs. This can be so widely interpreted that just about any price can be

justified and consumers have no way to gauge whether the effects of a drug are

worth the price.

 

 

 

Adding to the problem is that Americans take more drugs than necessary, often

popping expensive pills in lieu of opting for a nutritious diet or more active

lifestyle. The overuse of prescription drugs does not come without consequence,

however, and many people end up taking several prescriptions just to treat the

side effects of their initial drug treatments.

 

 

 

All the while, drug makers are spending billions on advertisements, not only to

doctors but also directly to consumers. The advertisements are often misleading

in regard to the drug’s effectiveness and often push new, more expensive drugs

when there is no evidence that their value is worth the extra cost.

 

 

 

Logic based on traditional thinking would say that with all of this spending on

drugs--drug spending in America has been rising at a rate of 14 percent to 18

percent a year--people would be getting healthier and their need for drugs would

be subsiding, but this is far from the case. Americans are instead faced with a

growing number of chronic disease epidemics, diabetes and obesity to name a

couple, despite all the new high-tech drugs. This should be the first clue that

drugs are not the answer.

 

 

 

The drug industry is fond of saying that spending more on drugs actually saves

money by reducing costly hospitalizations and other health care expenses. What

many people don’t realize is that their bodies come equipped with its own

natural defense system, the immune system. Building up your health is the best

way to reduce your health care expense and risk of hospitalization.

 

 

 

You can check out my nutrition plan for some helpful guidelines that will

inevitably lead to better health. My new book, The No-Grain Diet, discusses this

concept in detail and will give you some practical advice on how to implement a

healthier lifestyle that will minimize your chances of needing drugs.

 

 

 

What are some of the other reasons for astronomical drug prices that I didn’t

mention here? If you have other thoughts on drug pricing or would like to

comment on the article, I encourage you to post your own comments on this topic,

by clicking on the " Comment on this Article " link found at the top or bottom of

this page. Your comments will be added to Knowledge Filter postings so everyone

has a chance to get involved in the discussion!

 

 

Related Articles:

Are Drug Companies Next Target After Tobacco?

 

U.S. Drug Companies Battle Canada's Cheaper Drugs

 

Drug Industry Lobbyists Spending More to Influence Congress

 

Health Spending Growing Faster Than US Economy

 

Prescription Drug Sales Increased By Nearly 20% Last Year in US

 

Nearly $3 Trillion Dollars in US Health Spending is Projected

 

 

 

 

 

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