Why are prescription drugs so high in the US? Why are we paying such high prices for prescription drugs?

Question

What is the government doing to reduce these prices? Are they even doing anything? And what or who is/are influencing and supporting the government and the increasing prescription drug prices?

Answer 1

You're paying them for a number of reasons:

1) Research into new drugs is expensive.
2) The FDA approval process is long.
3) Patent life is only so long.
4) Price controls exist in other countries, so in order to make money, higher prices have to be charged where there are no price controls, i.e. here.
5) A number of people are paying nothing or getting their drug costs subsidized by the federal government, so in order to make money, someone else pays more.
6) The lobbying by pharmaceutical companies, the advertising surrounding new drugs, etc.

Let's face it - pharmaceutical companies are businesses. They need to make money and please shareholders. They're not charitable organizations. If you think taking the profit margin out of it will make it better, you're an idiot. Ask the government what happened when they decided to do that with flu vaccines. Companies stopped producing them because there was no profit in it.

Answer 2

Pharmaceutical companies invest their money to develop new drugs and find cures for otherwise incurable diseases. They can do this because they expect they will get their money back and earn a profit. America understands this and we are paying fair market prices for our medications and therefore we assure there will be more research and more cures will be found.
It's understandable that impoverished countries will place limitations on prescription costs...and we subsidize them by paying full prices.
However...wealthier nations that place limitations on prescription prices are effectively leeching off we who pay full price.
Pharmaceutical companies will continue to market their medications in these countries because, although millions have been spent in developing the medication, the production cost is low and they make a small profit on the pill (if you don't factor in the development cost.)
However.... if America puts limitations on prices....there will be no incentive to develop...and we'll have to get along with what has already been developed.

Answer 3

This is just my thought on it. Have you ever noticed when you go to the doctors office and they have that cool little pen and clip board with drug advertisements on it? Oh and then there is the box of tissues and the hand sanitizer. Not to mention the post it notes and calenders. All of them endorsing the medications that they prescribe to us. Do you realize who pays for all of that CRAP?!?! US!!! That's right. We do. That's another reason our medications are so expensive. Maybe if they would cut down on some of that garbage our prescriptions could be a little bit cheaper. That's just my thought on it.

Answer 4

Because as long as insurance companies are willing to
pay - the pharmaceutical companies are going to
continue to raise the cost.
And as long as people are willing to pay their premiums,
it will just go round & round. The little guy at the bottom loses.

Pharaceutical lobbyists will (financially) support the candidate
that stays out their out of their business.
It's time someone stepped in & did something about
these shady deals.

Answer 5

The pharmaceudical companies are in bed with our politicians, which is why our politicians are doing all they can to keep cheap drugs from coming over from Candada. They charge an arm and a leg because greedy CEO's need to have 20 cars instead of 10.

Answer 6

most drugs that reach the market make no money for years. the research has to be paid off first and most drugs that are researched never reach the market.
foreign drug producers are not bound to pay for this research and can undercut the american companies.
no conspiracy required.

Answer 7

Because the pharmaceutical companies have a strong and powerful lobby group and they've rallied around and bought off politicians. So we pay.

Answer 8

Because the Republicans and their cronies at the drug companies say we have to. And don't you DARE go to Canada and Mexico to get them because they're not FDA approved .*sarcasm*

Answer 9

Because insurance companies and HMOs weren't allowed to negotiate prices, in the Republican-controlled Congress' Healthcare Bill. Thanks, Republican-controlled Congress!