It comes as a shock to absolutely no one that health care costs in our country are growing at an alarming rate.
According to a recent report by the Commonwealth Fund, the rising cost of drug prescriptions drugs is major factor behind this increase.
As the report notes bluntly, some are facing the awful choice of paying the rent or buying their meds.
Some of the reasons noted for the drug increases are:
- High launch drug prices and equally high annual increases for patented drugs.
- Brand-name drugs are introduced with high launch prices and experience high annual price increases
- Some manufacturers create, or take advantage of, natural monopolies for drugs that enable them to significantly increase prices
- Lack of robust competition among manufacturers of generic drugs
- Lack of price competition among biologics and biosimilars
- Anticompetitive behavior by some manufacturers
- Some manufacturers use current patent-protection policies for brand-name drugs to extend monopoly pricing.
- The pharmaceutical distribution system does not make essential pricing information available to patients, providers, and payers at the point of care
The report was created to give lawmakers some insights into the reasons behind the skyrocketing cost of prescription medication.
From the point of view of me and my clients, it shines a welcome light on a growing problem. And whatever solutions and strategies are needed to keep this in front of our lawmakers, I’m for it.
As people get older, they will inevitably experience decline and will likely require medications to manage chronic conditions. As drug costs continue to skyrocket it will become harder to factor in these costs into a sustainable retirement of care plan.