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Navigating the Prescription Drug Pricing Maze: Action for Fair Healthcare Access

Written by: Nandini Dasari, Flower Mound HS

Over 131 million adults in the United States rely on prescription drugs: essential medications that can only be obtained with a physician’s written instruction or prescription. Among these individuals, the majority suffer from one of five common chronic conditions: diabetes, heart disease, hypertension, arthritis, and cancer. Particularly for the elderly aged 65 and older, the burden of annual expenditures on prescription drugs is significantly high, as many of them manage multiple chronic conditions and regularly refill costly prescriptions. This financial strain is also felt acutely by high prescription drug users and the uninsured. For instance, adults with diabetes on average incur $700 in out-of-pocket expenses annually for their medications.

So, what contributes to the high costs of prescription drugs? There are several factors at play. Firstly, pharmaceutical companies benefit from increasing the prices of the drugs they produce and sell. While these companies often justify these hikes by citing the expenses involved in drug development, clinical trials, and FDA approval processes, recent research published in JAMA Network Open challenges these claims. Despite significant research and design spending, most of the top 30 pharmaceutical companies still generate billions in profit. Furthermore, extensive advertising to consumers, promoting newer and often more expensive drugs, adds to the cost burden, despite these medications not necessarily leading to improved outcomes compared to older alternatives. The consolidation of pharmaceutical companies into monopolies to avoid price competition has also contributed to the skyrocketing costs of prescription drugs.

Unfortunately, it’s anticipated that prescription drug prices will remain high in the near future. However, recent legislative efforts offer hope for potential solutions. The Inflation Reduction Act of 2022, a significant policy reform passed by the Biden Administration, allows the U.S. government to negotiate directly with drug manufacturers to set prices for prescription drugs. The initial steps include limiting the price of insulin for Medicare recipients to $35 and beginning negotiations for ten additional drugs. Although the impact of such policy actions is expected to be gradual, given the vast number of approved prescription drugs, these measures mark a step towards addressing the issue.

In the meantime, as a youth or young adult advocate, there are several ways you can drive reform for fair prescription drug prices:

  1. Stay informed about Medicare drug price negotiations through the Centers for Medicare and Medicaid Services website.
  2. Support action organizations such as AARP, Consumers Union, and Patients for Affordable Drugs, which advocate for lower prescription drug prices.
  3. Engage in your local community by raising awareness about the issue of high prescription drug costs on social media and discussing it with family and friends who use prescription medications.
  4. Exercise your right to vote in the 2024 election to support an administration that aligns with your health policy goals.

 

In conclusion, the issue of high prescription drug costs in the United States is a complex and multifaceted problem that affects millions of Americans, particularly those with chronic conditions and the elderly. While pharmaceutical companies often justify high prices by citing research and development costs, studies suggest that substantial profits are still being made, raising questions about the ethics of pricing practices.

Recent legislative efforts, such as the Inflation Reduction Act of 2022, offer hope for potential solutions by enabling the government to negotiate drug prices directly with manufacturers. However, the impact of such measures may take time to materialize, given the vast number of prescription drugs on the market and the complexities of the healthcare system.

In the interim, individuals, particularly young advocates, can play a crucial role in pushing for fair prescription drug pricing. By staying informed, supporting relevant organizations, raising awareness in their communities, and exercising their voting rights, they can contribute to the ongoing dialogue and efforts aimed at achieving more affordable and equitable access to essential medications for all Americans. Ultimately, addressing the issue of high prescription drug costs requires a collective effort involving stakeholders at all levels of society, from policymakers and industry leaders to healthcare providers and informed citizens.

Works Cited