How Prescription Drug Prices are Driving Up the Costs of Medical CoverageApril, 2007
With prescription drug prices predicted to grow exponentially in the next 10 years, many people are asking how we can possibly design medical coverage that will incorporate the use of such important medicines. But, rather than abandon medications that may save lives, companies and lawmakers alike have devised a plan for
affordable individual health insurance and family insurance that specifically covers the generic forms of much-needed drugs.
The average price of brand-name drugs in 2006 was $111 versus $32 for generics. According to the CDC, in the past month at least 45% of Americans used at least one prescription drug, and 2 billion orders for such medicines were ordered and/or provided.
Clearly medicine is big business, and is reflected in the rising cost of prescription drug prices. Drug companies also spend a reported $7 billion on marketing their high-cost, brand-name drugs to doctors. As a result, you have more people taking these drugs for chronic, lifelong diseases, where in the past they were used at very late stages of disease.
And the ramifications are showing up in our medical coverage costs. Some of the most important drugs out there are the most expensive; for example cancer treatment and medications can run up to $7,000 per month. And nobody, not health insurance agencies or patients, can afford to pay that kind of bill.
So what is to be done with it? Prescription drug use is expected to almost double by the year 2010. How can we afford to pay for these potentially lifesaving medications?
The answer has been aggressively pursued by lawmakers and consumers in search of an affordable individual health insurance plan for the average American, and here it is:
Use generic drugs.
Facts on:
Afforable Individual Health Insurance
Did you know...
The average price of brand-name drugs in 2006 was $111 versus $32 for generics?
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If drugs cost less, insurance companies could charge less for coverage, extending the availability of insurance to families. Drug treatment also prevents expensive hospitalization, reducing costs. According to
kaisernetwork.org, "in 2006, several blockbuster drugs went off patent and lower drug spending resulted from patients switching to generics. In addition, because companies have launched aggressive campaigns to encourage patients to use generic drugs, much of the costs savings already have been realized."
Consumers in search of an affordable health insurance policy should search out
medical coverage that specifically relies on generic drugs to bring down premiums. In so doing, this forces prescription drug companies to lower their costs to compete, and keeps people healthier in the long run.
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