The International Federation of Health Plans concluded that Americans are paying six times more for prescription medication than the rest of the world.

The unreasonably high price of pharmaceuticals in the United States has shined a bright light on the drug industry, exemplifying the fact that Americans are paying much more for medication than patients in other countries.

The government healthcare budget for prescription drugs is low in comparison to other nations.

Structural Inequalities

Americans are paying more for brand-name drugs across the board, but cancer patients and those in need of specialty medications are the hardest hit.
Image: Jaron Associates

American insurance companies pay about $215 per customer each month for the acid reflux drug Nexium. In the Netherlands, an equivalent prescription costs about $23.

Data from the International Federation of Health Plans shows that pharmaceuticals in the United States are six times more expensive than in other countries.

The priciest drugs are specialty and cancer medications, but standard prescriptions are costly as well. Cancer treatment pill Gleevec costs patients about $6,214 per month in the United States, compared to $1,141 in Canada and $2,697 in England.

Rheumatoid arthritis drug, Humira, is $2,246 in the United States, compared to $881 in Switzerland and $1,102 in England.

Americans who suffer from depression could pay $194 for Cymbalta, but the price is $46 in England and $52 in the Netherlands.

The health care system in the Unites States is more competitive than other countries. Fewer players would allocate more purchasing power to certain groups, which would give them the ability to negotiate a reduced cost.

The United Kingdom’s National Health Service supplies the country’s drugs through bulk purchases called formularies. The U.S. has multiple unregulated private insurance firms, hospitals and plans that buy for individual groups of consumers. Through different plans, consumers allow companies to negotiate prices with the pharmaceuticals on their behalf.

But a smaller pool of negotiators yields more power to the consumer, allowing patients to decide what they are willing to pay.  In a system like this, companies are forced to make fair negotiations if they want to be a part of the marketplace.

The Root Of The Problem

Pharmaceutical companies have the power to set drug prices without explanation.
Image: Budding Into Fullness

Pharmaceutical companies are in control of setting drug costs, and it’s clear that they are putting profits before people.

A Kaiser Family Foundation poll found that 72 percent of Americans think drug costs are unreasonable and want drug companies to release information on how they set prices. The current system leaves consumers without a choice or an explanation.

Pharmaceutical trade group PhRMA attributes the high prices to the funding of research and development. According to PhRMA, companies invest almost $2.6 billion dollars on average for more than 10 years to bring a drug into the marketplace. Many new drugs never make it.

But critics disagree. Many medical experts believe that drug companies set the prices high solely because they can.

“We have no rational system in the U.S. for managing prices of drugs,” Dr. Peter B. Bach, director of Director of Memorial Sloan Kettering’s Center for Health Policy and Outcomes told CNN.

Medicare provides drug treatments for a majority of Americans, but the provider is prohibited from negotiating with drug companies. Presidential candidates Hilary Clinton and Bernie Sanders have addressed necessary industry changes as a  core of their platforms.

“People should not have to go without the medication they need just because their elected officials aren’t willing to challenge the drug and health care industry lobby,” Sanders said in a statement on his official website. “Between our government’s unwillingness to negotiate prices and its failure to effectively fight fraud, it’s no wonder drug prices are out of control.”

In Germany, nonprofit health insurers are able to bargain with pharmaceuticals and health providers to get the best price possible. Medicare should be able to use its buying power to set prices by negotiating directly with pharmaceutical companies to find a reasonable cost.

The United States lacks a central agency, federal or non-governmental, to conduct research that focuses on drug efficacies. A system in Canada allows providers to compare drugs to similar treatments on the market to determine an accurate price.

Only by regulating the drug industry and gaining the power to negotiate with pharmaceutical companies will the price of pharmaceuticals in America decline.

“Those guys are profit driven. That’s a big problem,” said Kesselheim.

The post Why Are U.S. Patients Paying More For Pharmaceuticals? appeared first on Citizens Report.

A recent poll from the Kaiser Family Foundation shows that Americans want pharmaceutical companies to lower drug prices. The poll gathers public opinion on pharmaceutical companies and options for cost reduction.

Hepatitis C is a blood-borne virus that infects, damages and causes cancer in the liver. But the good news is that a cure does exist.

The bad news is the pharmaceutical manufacturer of the Hep C treatment,  called Sovaldi, is charging $1,000 per pill.

About half of Americans report using prescription drugs. According to a new poll, Americans need these drugs and are fed up the with excessive, unfair pricing that runs rampant in the nation’s health care industry.

Unreasonable Prices From An Unlikable Industry

Polling shows the American pharmaceutical industry is the least popular service group because drug companies put profits over people.
Via: Conscious Life News

Health maintenance will always be a necessity, and so will the American pharmaceutical industry. Pharmaceuticals have the power to treat and cure illnesses that range from mild to serious, which means that the companies manufacturing the drugs have leverage to keep prices high.

But Americans are not oblivious. In fact, most are aware that pharmaceutical prices are much higher than they should be. In August, the Kaiser Family Foundation conducted a poll that found 72 percent think drug prices are unreasonable.

Out of the group that believes the cost of drugs should be lowered, 77 percent are currently taking pharmaceuticals. But 66 percent who aren’t using prescription drugs are also in agreement.

In addition, 3 out of 4 Americans believe they’re paying higher prices in the United States than they would in Canada, Mexico and Western Europe for the same prescription drugs. Going further, 72 percent of Americans believe Canada should be allowed to import prescription drugs to the United States. Americans want their drugs, and they want them at a fair price.

The polling shows that Americans are aware that pharmaceutical companies provide an important service. But that doesn’t mean the public has to like them.

Pharmaceutical companies are the least liked service group, falling below doctors, food manufacturers, banks and airlines. Fewer than half of the public sees these companies as positive. Only 42 percent of Americans have a favorable view of drug companies, in addition to the fact that 74 percent believe pharmaceutical companies put profits before people.

However, 62 percent of Americans believe that drug companies play a pivotal role in bettering people’s lives.

There has to be a way to create balance between the consumer and the producer.

Potential Ways To Lower Drug Costs

One proposed idea for lowering drug costs would be to allow medicare representatives to negotiate prices with pharmaceutical companies. 83 percent of Americans are in agreement with this option.
Via: KATV

As the presidential election draws near, candidates are speaking out about their opinions on prescription drug prices. Representatives from different political parties are in favor of lowering drug costs, but the way they plan to do it differs by partisan affiliation.

Republicans favor allowing market competition to regulate drug prices, whereas Democrats would prefer to look to the federal government for regulation. The public leans toward market competition, but only by 51 percent or a little more than half.

A few different strategies were included in the poll to introduce possible solutions and gather public attitudes on the current price reduction options. About 86 percent of Americans would like drug companies to provide information to consumers about how they set their prices, which would help to uncover the reasons why they’re so high. If there was an explanation as to why the drugs are so costly, working toward ways to lower the cost would be easier.

The poll addresses that it’s more difficult for sick and lower income individuals to afford pharmaceuticals. To combat that, more than 7 out of 10 people want to put price restrictions on expensive but life-saving drugs used for sicknesses like hepatitis or cancer.

In addition, 83 percent of Americans would like the federal government to negotiate lowered prices for people on Medicare. Allowing cost negotiations with Medicare is supported by the majority of both Republicans and Democrats, which means that it will be a likely and unarguable policy move.

Another option for lowering drug costs would be initiating a system of price choice that would be similar to the one already in place. People would be encouraged to buy cheaper drugs, but would have to pay more if they chose a similar, more expensive version. Only 48 percent of people are in favor of this option, which may be because it is similar to the generic medication options already offered. However, presidential candidate and Senator Bernie Sanders has been highlighting the rising price of generic drugs in his campaign.

Pharmaceutical companies aren’t looking forward to pricing restrictions, claiming that a more regulated marketplace would place limits the amount of new drug discoveries and sponsorships. But more affordable drugs would benefit the public as a whole.

Pharmaceutical companies should repeat this mantra: people over profits.

The post American Majority Disagrees With High-Priced Pharmaceuticals appeared first on Citizens Report.