Economic Implication of Prescription Drug Coverage and Generic Drugs
The prices of drugs have been increasing over years. The increase has serious but different economic implications to individuals and the health care system.
Individual Point of View
The prices of prescribed drugs have been increasing at a faster rate than the rate of inflation (Congress Watch, 2003). Thus, the drugs put excessive pressure on consumer disposable income. The increased cost of medication reduces the money available for spending on other products. Thus, prescription drug coverage has a negative impact on the economic wellbeing of the people. The generic drugs are priced at a lower price. Thus, they provide a viable alternative to those who cannot afford the patented drugs.
Effect on the health care system
The health care is also adversely affected by the increased prices of prescribed drugs coverage. It has been difficult to deliver quality health care services to targeted population. The Pharmaceutical companies use enough money to influence the healthcare policies negatively. They use their economic powers to influence legislations in the health care sector. It is difficult for the government to enact laws that check pricing of drugs. Thus, it is expensive to come up with efficient insurance policies that adequately cover all citizens. Though generic drugs lessen the cost of health care, it is difficult to encourage the insured to purchase generic drugs if they have the option of the original patented drugs. In many cases, the insured population chooses the overpriced drugs with a view that they are more effective than the generic (Congress Watch, 2003).
Conclusion
There are extensive negative implications of prescription drug coverage on health care system and individuals. It is, therefore, important for Pharmaceutical companies should recheck their pricing to minimize the extensive negative economic effects.
References
Congress Watch. (2003, June). Retrieved February 17, 2016, from
www.citizen.org/documents/Pharma_Report.pdf
