Pharmaceutical drug cost policymaking
Document Type:Research Paper
” There are lacking policies to control medicine prices in most countries, especially America. This means manufacturers of pharmaceutical drugs have the power to charge whatever price they want on their products. According to research, the manufacturers can charge prices that are high simply because they have the power to do so. In all cases, they charge more than required, giving the consumer an unpleasant overwhelming burden of acquiring such medicines for the treatment and management of diseases. Manufacturers of medicines give explanations on how expensive it is to manufacture a drug and releasing for consumption, and they have to set the price high in order to achieve profits, enable them be in business and promote further research (Bose, 2017). The theory of elites also explain the existence of counter-elites who develop within groups that have been excluded.
The intellectual warfare between counter-elites and elites is usually present, and it could be problematic if elites bring on board counter-elites. The elites make policies affecting drug manufacturing, distribution and sale, and their policies are in line with their own interests. In this elite theory, the classical theory of the elites encompasses two main ideas, which include: power is in the authority’s position in institutions of politics and economy, and the difference in psychology that puts elites separately is the resources they have such as skills and intelligence, and the interest in the ruling government. The elite believe that the rest are useless, incompetent and unable to govern themselves, and therefore, the elite are resourceful and can steer the government and policy making for pharmaceutical manufacturing, distribution and sales (Amsden, Di Caprio, & Robinson, 2012).
The elite theory explains the involvement of the most powerful and skilled group that work with the government to promote drug availability, while the interested groups struggle to set policies to help build partnerships with manufacturers of these drugs so that medical costs are lowered and consumers are facilitated to purchase these drugs for management of their diseases, infections and conditions. Background There are easier ways of getting a dug to the market by these companies. There are detours around processes of regulation of drugs that drug manufacturers take, especially in clinical trials stage on the development of a drug, accelerating the process of getting the medicine to the consumers. The rise of drug costs affect both new and old drugs (Aaron, Jerry, & Ameet, 2016).
Some drugs that have been in the market for decades can rise. The high prices of medical drugs make it hard for individuals to develop and stick to any budget concerning healthcare. This will lead to volatile prescriptions, which is a dangerous situation in medical healthcare system where families and individuals wrestle with all the time. There are medications that have sustained lives of patients, and sometimes this presents a conflict between staying alive and the harsh truth of the ability to afford medications. When medications shoot from $94 to above $600, it becomes surely impossible to have a budget for them (Bose, 2017). The HHS department of the US reported their observations on prescription drug trends especially on spending, and the report was quoted to have explained that “prescription drug spending in the United States was about $457 billion in 2015, or 16.
2427 Bill, which would bring a lot of changes in the pharmaceutical industry market. Interest groups such as biotech companies and pharmaceutical manufacturers, U. S. insurance organizations, and senior population who have more than 5 time the prescriptions of working Americans. The manufacturers of drugs enjoy charging Americans highly in order to cover their marketing and research costs, and additionally, have some huge profits for themselves. The elderly senior citizens make up 20% of American population that votes, and their role in making political decisions is highly valuable and influential. We should allow Medicare organizations to negotiate medical prices. The American beneficiaries making about 57 million should bargain with manufacturers of medical drugs with the aim of lowering prices of prescription drugs. “Secretarial negotiation authority” is the term for this kind of negotiations.
Such kind of policy move could save about $16 billion annually. Policies to empower research to compare effectiveness and safety of medicines treating similar conditions will facilitate competition in prices and reduce expenditure on treatments that are unnecessary (AARP. org, 2017). We should also implement “value-based pricing” such that drugs that are more safe and efficacious are pricier than the ones that are less safe and efficacious. For instance, medicines that cure diseases should be valued more than those that don’t improve existing regimens. These is a big debate on definition of value in this scenario, but it is possible to develop meaning for “value. California state rejected a proposal requiring negotiates of state agencies with manufactures of drugs. Other states have passed transparency legislation about costs of drugs.
Utah State has weighed the possibility of importation of medicines from Canada. Other states have passed bills that require pharmaceutical companies to display their expenditure and explain the hikes in prices. Advantages of Elite Theory The elite theory advocates that the elites have the capacity to reduce violence due to their powers and wealth, and the elite consensus (Amsden, Di Caprio, & Robinson, 2012). The powers of interest groups originate from the wealth, size, strength, leadership, presence of decision makers, and internal cohesion. The theory advocates for the political system to manage conflicts in the group by establishing rules that govern the game, enacting into law the deals, arrange compromises, and enforcing and adjusting laws that govern medical drug bills and affordability. Disadvantages of Interest Group Theory This theory believes that money and finances are key to manipulate the government.
The interest groups are in position to raise money, which give them power via donating the money to politicians. The theory believe that the conflict between groups is required to win their position and interest (Deric, 2011). The current situation does not allow Americans to import drugs from other countries, and therefore, setting systems that promote legal importation of pharmaceuticals that are less expensive could lead to lower prices and increase affordability of these drugs. High level of transparency in pricing of drugs is require because manufacturing companies have no explanation to verify the high medicine prices Policies to improve the comprehension of how these companies price their products is crucial in helping the American population in determining whether the elevated costs are reasonable.
Implementation of “value-based pricing” such that drugs that are more safe and efficacious are pricier than the ones that are less safe and efficacious. This would provide alternatives for better, cheaper drugs with the required specifications the consumer wants. In conclusion, pharmaceutical companies should be watched closely and regulated by the governments in order to control the availability of affordable medical drugs that are efficacious and safe for consumption. org. Why Drugs cost so much. AARP. org. Amsden, A. edu/2017/04/03/drug-pricing-health-policy-expert-gerard-anderson/ Anderson, J. E. Public Policymaking (8th ed. Boston: Houghton Mifflin Company. Austin, B. Retrieved from Huffpost: https://huffpost. com/us/entry/us_59a606aae4b0d81379a81c1f/amp Brink, S. Health on the Border. U. S News and world Report.
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