Prescription Drug Pricing Is Totally Broken, Even For Generics

There is an outrage rising from every quarter about the high prices of prescription drugs, and it is not without justification. Studies have shown that the average price for brand name drugs has risen by more than 48% between 2013 and now. The increasing price of drugs puts a strain on the healthcare industry and their affiliates-including insurance companies and the patients themselves, some of who can no longer afford their needed medication.

Via ndrugs.com

This increase is not just with brand name medication; generic medication makes up 85% of the drugs taken by the average American for the more common conditions like diabetes, high blood pressure and pain management.

Generic drugs are copies of brand name drugs made after the patents on the brand name has expired, making them more affordable and more accessible to the average user. In comparison with brand names, generic drugs are very much cheaper but this comparison pales in practical terms for several reasons, all of which tie back to one thing: insurance.

In the recent past, patients only had to contribute a $10 copay for access to all the drugs they needed. With the advent of Obamacare, premiums on health insurance are trickier to fulfil, with the doctor and insurer playing a greater role in setting the prices of drugs. This has led to varying prices on medication depending on the size of the patient’s insurance claim.

This also applies with insurance provided by employees, with rising costs that make the patient more financially involved in their healthcare than ever before. And these costs are rising annually.

Until the last few years, insurance covered the cost of most generics; patients would chip in an average co-pay of about $10 and never think twice about the cost of their medications. Over the last decade, however, the $10 copay has slowly begun to disappear, and patients are exposed to prices that can vary wildly. The average American is paying staggering sums for their medication, and bearing those costs alone.

The changes in insurance notwithstanding, there are still ways to get the most out of drug pricing. Some pharmacies have programs that provide drugs at discounted prices for the participants, and drug manufacturers (whose hands are tied in the pricing matter too) have followed suit with discount programs that aid the patients so that healthcare costs are not staggering.

Another aid is that provided by the pharmacy benefit managers-the group who stand in the gap between manufacturers and pharmacies and play a role in price setting. Discount programs sponsored by the benefit managers make medication more accessible for patients who would not be able to afford the market prices.

Some new applications like GoodRx can help the patients to compare prices of drugs from various pharmacies and programs in different locations before committing to buying them, and this way they can get up to 75% off on the market price of the medication they need.

Solutions to the pricing problem that is affecting generic drugs-drugs that are supposed to be a safe and cheap alternative for the masses-are direly needed. More than 50% of Americans are struggling with a chronic illness, and the majority of them cannot afford the exorbitant prices of drugs. It is not only essential, it is necessary that healthcare reforms target this area of drug pricing so that drugs can be accessible to the average American who needs them. The high cost of drugs in America is a problem that needs swift and decisive solutions now, rather than later.