The main reason as to why prescription drug prices are on the rise is because of the existence of monopoly rights given to researchers and manufacturers of those drugs by the government. It seems like firms have been getting away with this for years and benefiting by making massive profits throughout the years. There are many other reasons why these drugs have been on the rise over the years besides the monopoly rights as listed below.
The country has a system that allows manufacturers to be the sole producers of drugs as a way of increasing innovation and growth in the country. There are no control of the prices of medication by the government since the manufacturers have been given the rights to set their prices thuds taking advantage of the consumers. When there is competition, the prices keep on fluctuating since a firm knows that clients will go for the one whose prices are cheaper and affordable.
Research is expensive, and these companies invest in researchers to check if their drug is effective if it is new and sometimes that could take over a decade; therefore, they try to compensate by increasing the prices. If the market is small the firms try to make money by shooting the prices since these medications are not purchased on an occasional basis. When a firm gets a patent right of twenty years, that is a long time as compared to the way things work in other countries, and it is enough time for them to exploit the consumers.
Marketing is not a cheap affair since one must convenience their clients why their medication is better, and since the firms can sell to their clients directly after marketing, that is the way they compensate for the expenses. In as much as insurance companies would want to negotiate for the drug prices to lower, they are on a fix and would be hard for them since the drug makers give them a take it or leave it option knowing there is no one else with the drug. However, the good part is that insurance companies try to get the best for their clients but also manufacturers try to offer coupons so that one does not use a lot of money from their pocket.
If you want to get the medication at a lower cost, ensure there is an insurance company one is working with since they cater for most of the cost but also be ready to negotiate. They is why it is essential to choose the insurance company well since it is the determining factor of how much one will spend. When one finds that their medication is expensive than planned, walking away is not a solution so one can ask for cheaper alternative that will still serve the purpose.