Prescription Drug Costs Continue to Rise

Recently, CNBC released a report about a study at a major HMO with over 1,200 participants. In the study, 73% of the individuals said the cost of prescription drugs is too high because pharmaceutical companies charge too much for them.

Only 10% blamed insurance companies for the high cost of prescription drugs, even though clearly the out-of-pocket costs for an individual come from the co-pay amounts, which have steadily increased year after year.

Elderly and those on a fixed income who otherwise cannot afford prescription drugs, should seek financial assistance pharmacy Michigan and may qualify for subsidies from the pharmaceutical companies.

Consumer Market Dynamics

Healthcare costs paid by consumers for prescription drugs continue to increase. Certainly, some costs savings come from using generic versions of brand name drugs. Nevertheless, with illnesses that have new treatments, many times the only thing available is the new prescription drug. This puts the pharmaceutical companies in a monopoly position. Patent protection has to expire for generic versions of the drugs to become available.

The Cost of Clinical Trials More than Doubled in the Past Decade
Taking a balanced viewpoint, it is clear that costs for the pharmaceutical companies to bring a new drug to market have increased substantially. Tuft University did a study that noted the cost of new drug development increased from $1.2 billion to $2.6 billion during the period of 2003 to 2013.

When it costs so much to bring a new drug to market that naturally is going to make them expensive. How bad is it? As an example, CNBC reports that a new drug to treat Hepatitis C, costs $84,000 for a 12-week regimen.

Cost Recuperation or Excessive Profits?

Let’s check the numbers for the new Hepatitis C drug. The Center for Disease Control (CDC) says that 2.7 million Americans have chronic Hepatitis C, but aren’t yet sick. In 2013, the number of cases of acute Hepatitis C (those who are sick) was 29,718.

If all the acute cases were treated with this new drug, that equals about $2.5 billion, which is about what it cost to bring the drug to market. However, if only a small portion of those with chronic Hepatitis C get the acute version, profits for the maker of this drug, will be in the hundreds of billions, unless the price comes down.

Summary
This is a problem without an easy solution because the contributing factors of rising clinical trial costs and the insurance companies’ desire to increase patient co-pays, means that it is likely consumers will pay more for prescription medications.

5 Tips for Finding Financial Assistance for Medications

When it comes to going to the doctor and paying for prescriptions, the accompanying costs can get quite expensive. This is especially true for people who don't have insurance. And still yet, even some people who do have insurance find it difficult to pay for the always-increasing costs of medical services and products. Fortunately, though, there are several tips a person can follow to take advantage of for financial assistance pharmacy Michigan.

Consider investing in better insurance

Many times, high medical costs are endured because a person chooses to pay low premiums on their health insurance plans. If they will up their premiums, many insurance providers will greatly lower the accompanying deductibles. With lower deductibles comes the ability to be out less money when going to the doctor and paying for medications.

Local resources

Many pharmacies provide access to local financial assistance programs that can be tapped into to help pay for prescriptions. Even some pharmacies themselves offer their own financial assistance options, such as 30-day prescriptions for only $4.

Don't overlook Medicaid

Even if a person already has health insurance, it may be possible for the person to qualify for financial pharmacy assistance through Medicaid. The best way to determine whether or not Medicaid resources are available, it's advised to speak with a professional Medicaid specialist. Tap into non-profit organization assistance There are local, state and federal non-profit organizations that provide access to financial assistance for prescriptions. Best of all, many of them are not based on income. This means even if a person makes a considerable amount of money each year, if there are gaps in his or her insurance that make it difficult to pay for medications, these non-profit organizations can still be of help.

Take advantage of the Affordable Care Act

The Affordable Care Act has put into place a nationwide insurance marketplace that anyone can shop at for an insurance policy. And even if a person has insurance through his or her employer, it's still possible to buy a policy that covers insurance gaps, making it more affordable to pay for pharmacy costs.