Week 5 Assignment: Online Library Exercise and Annotated Bibliography

Week 5 Assignment: Online Library Exercise and Annotated Bibliography

Week 5 Assignment: Online Library Exercise and Annotated Bibliography

Cost of Pharmaceuticals

Brittney Sierra

PBHE315

3/24/2020

Introduction:

This research paper will discuss the pharmaceutical firms and how they price the drugs. The purpose of this paper is to explain the reason for such high mark ups, government costs, access to the public and the way we got to this place with astronomic medication cost.

Body:

The pharmaceutical companies have an unusual capability to function relatively unmanaged and to raise drug prices far above inflation rates.

The main parties that are involved in the issue of pharmaceuticals are the pharmaceutical firms, the government and insurance firms. All the three elements feed off one another and can determine the market value.

One of the market forces that affect pharmaceutical pricing is the monopoly power of the pharmaceutical firms. Thus, these companies feel that they have the power to increase or reduce drug prices at any time since there is no stiff competition.

The approach in which the demand is showed in this issue is with regard to the consumers’ desires for specific treatment. The doctors prescribe medication and getting kickbacks from the pharmaceutical firms for selling their products.

With regard to suppliers, we shall consider what the pharmaceutical firms have on the market on specific market for specific illness and drugs. Supplied could be based on the way he firms market their products.

The affordable care act will be impacted which directly involves the government, who should not be involved in the health care in any aspect. This aspect should be addressed by the state and the free market to provide insurance policies and coverage.

The health disparities demonstrated in the issue of cost of pharmaceuticals. The issues shows that the market calls for higher drug process in poorer areas.

The global markets have employed pharmaceutical pricing policy that considers the evolving market for pharmaceutical products as well as shape the market.

Conclusion:

In conclusion, according to the discussion above the cost of pharmaceuticals has been analyzed and seen to have many different variables and factors that all have impact on the market, supply, demand and the cost.

References:

American Medical Association. (2019, April 9). How are prescription drug prices determined? Retrieved from https://www.ama-assn.org/delivering-care/public-health/how-are-prescription-drug-prices-determined

Borges dos Santos, M.A., dos Santos Dias, L.L., Santos Pinto, C.D.B. et al. Factors influencing pharmaceutical pricing – a scoping review of academic literature in health science. Journal of Pharmaceutical Policy and Practice, 12(24). Retrieved from https://doi.org/10.1186/s40545-019-0183-0

Baker Danial. (2017, January). High Drug Prices: So Who Is to Blame? Hospital Pharmacy, 52(1), p.5-6

Cockburn, et al., (1997). Characteristics of Demand for Pharmaceutical Products: An Examination of Four Cephalosporin’s. The RAND Journal of Economics, 28(3), p.426-446. Retrieved from https://www.researchgate.net/journal/0741-6261_The_RAND_Journal_of_Economics

Hayes Tara. (2018, June 20). Understanding the Policies that Influence that Influence the Cost of Drugs. Retrieved from https://www.americanactionforum.org/insight/understanding-the-policies-that-influence-the-cost-of-drugs/

OECD. (2008). Pharmaceutical Pricing Policies in a Global Market. OECD Health Policy Studies. Retrieved from https://apps.who.int/medicinedocs/documents/s19834en/s19834en.pdf

Sachs, J. D. (2016, October 24). bostonglobe. Retrieved from Disparities and High COsts Fuel the Health Care Chrisis: https://www.bostonglobe.com/opinion/2016/10/23/disparities-and-high-costs-fuel-health-care-crisis/iT34fdxyXHGhiLaJTvlj5J/story.html

Week 5 Assignment: Online Library Exercise and Annotated Bibliography