Increase in Prescription Drug Cost and Its Economic – part 8
Posted by admin in Business EssaysBut however, may be for this reason, many Americans turn a critical eye on these pharmaceutical companies, thinking that these companies have been profiteering from the peoples for years illegally. One of the reasons is that, they have to pay over twice as much as their European counterparts for the same prescription drugs. This fact has led many to complain against United States for subsidizing European health care.
The increased inability of a growing number of patients to pay for prescribed drugs has important effect for population health care and health system costs. Prescription noncompliance is relevant to upper levels of emergency department admissions. Failure to get prescribed drugs can have serious health consequences for the people and substantial economic consequences for society.
An estimated 16.6 million Americans reported being unable to purchase a prescribed medication in 2002 (WSU Magazine, 2004). So, this number has a great political significance as well as economical significance. If such prescription noncompliance leads to undesirable health outcomes and unaffordable health service cost, then surely the economic effect would be substantial. So, from the social, political and economical point of view it is to be said as one of the most controversial problem for general American population.
What is the overall economic effect of this situation it represents? High price of new prescription drugs is the cheapest against rising overall medical expenses. The correlation between change in drug use and costs and other medical services and costs needs to be realized.
During the period of 1990-1998, real per capita expenditure on prescription drugs in the U.S. increased by 84% (Okunade, 2002). In the beginning of 1993, average annual percentage increase in prescription drug spending exceeded the overall percentage increase in national health expenditure (Okunade, 2002). According to estimation, prescription drug spending by the Medicare population is increasing and will be $445 billion by 2012. In 1990, only $40.3 billion was spent on prescription drugs, compared to these large amounts. In 2000, $140.8 billion was spent by both public consumers and private consumers. In 2001 it increases by 21 billion more to $161.8 billion. In 2002, the consumption on prescription drugs jumped to $179.2 billion. But by the time of 2015, it would be $720 billion.
