CBS news asks an important question about drug prices; are we getting duped?
It is no secret that brand name prescription drugs are expensive, and for many of them, insurance helps us keep the cost in check. The important question of course is, why so much for so little? It is also no secret that the average brand name drug can have an almost 4000% markup. When the drug becomes generic, the price drops by a huge margin.
Are we getting Bilked asks CBS news? It is also no secret that the drug industry spends an enormous amount of money on lobbying in congress to make sure that their interests are protected, and ours are not. The drug lobby spent in the billions to make sure they can keep their patents and make sure drug costs are high. Check this out here.
What would happen if they didn’t lobby, didn’t advertise on television and were restricted to magazine advertising? Could we get a break on the price then? See the CBS news article here
With drug prices doubling, are Americans getting bilked?
When it comes to out-of-control health-care spending, the rising cost of brand-name drugs may need a prescription of its own.
Dozens of brand-name drugs have doubled in price since 2007, while the consumer price index has risen only 12 percent over the same period, according to an analysis for Bloomberg News by health-plan comparison company DRX.
At the same time, pharmaceutical companies are introducing new drugs at astounding prices, such as the new hepatitis C treatment Sovaldi, which comes with an astounding $1,000 per day price tag.
What’s driving the surge in prescription medicine costs? A recent consolidation among pharmaceutical companies, as well as drugmakers pushing up prices on new products to offset declines in older medications no longer covered under patents.
The strange economics of the drug industry means that a small slice of the America population is being asked to pay increasingly more for treatment, while most patients have actually seen their costs decline, according to an April report from the IMS Institute for Healthcare Informatics.
Bloomberg cites the example of Earl Harford, an 84-year-old retired professor who is facing costs of more than $7,600 per month for a medication to treat his leukemia. That’s three times the price he paid in 2001. Harford has had to spend $140,000 of his retirement savings to pay for the drug.