By Guest Author (Brandon)
Prescription drugs have become part of the American society and have been a controversial topic among government officials. The United States Government is trying control and prevent the amount of drug use that occurs among the American population. Prescription drugs have been abused over the recent years and that has caused more concern for the United States Government and the American population. The prescription drug market is a billion dollar industry in America and it is vital that all regulations and controls are properly maintained.
Currently the governmental control over prescription drugs in the United States has resulted in lack of price ceilings, limitation of completion, allowance of drug advertisement, and prohibition of imported drugs. Without capping the cost of newly patented drugs, the resulting impact is the release of imitation drugs immediately following the term end of the patent protection in effect; these prices are substantially lower without the need to compensate or intensive research and development (Openshaw, 1994-2011). Government-mandated patent protections have developed a legalized monopoly allowing pharmaceutical manufacturers the freedom to set their own pricing on newly patented drugs, which more than compensates for research and development costs (Openshaw, 1994-2011). The effect on the market is the continued motivation for innovative drug research – drug companies strive to reach patents and their resulting profit margin (Openshaw, 1994-2011). Since the 1980’s, the Food and Drug Administration permits pharmaceutical companies to advertise directly to consumers as well as physicians, simultaneously driving up demand and costs for their newly patented medications (Openshaw, 1994-2011). The Food and Drug Administration prohibits pharmaceutical drugs to be imported into the United States from other countries, to which drug manufacturers respond by setting up facilities in both Canada and the United States (Openshaw, 1994-2011). This gains them the advantage of unlimited pricing (and hence profitability), as well as the 20-year monopsony with territories Canadian laws perpetuate (Openshaw, 1994-2011). Both costs and benefits are reaped by government control over prescription drugs; however with the extreme costs of health care there is an urgent need an increase in benefits, and far less costs.
The United States Government has revealed the National Drug Control Strategy hoping to control and prevent the amount of drug use that occurs among the American population. The National Drug Control policy director, Gil Kerilowske, is hoping the collaborations with other agencies will aid in reaching its goals. The strategy’s first goal is to see what populations need drug prevention and treatment. They have identified the three most at risk populations which are women, college students, and veterans. These groups have been the most at risk in the past years compared to others. The National Drug Control Strategy is also focusing more on prescription drug abuse this year because it has become a significant problem in the United States.
One solution towards improving the margin of benefit from the government’s control over pharmaceutical drugs involves limiting the demand in the market. As Bethany Winkel’s article published by Treatment Solution’s Network (2011) affirms, putting restrictions on the usage and promotion of pharmaceutical drugs would improve not only the cost of medications and overall health care, but also would aid in eliminating the current numbers of those addicted to prescription medications (Winkel, 2011). The cost improvement as a result of decreasing prescription drug abuse would also be felt in multiple social sectors, including the department of justice – all of which improve the total amount of government spending available towards higher goals in health care, including reform to provide care for all people in the United States. Winkel’s research concludes that this improvement would also provide a much-needed shift in funds to support numerous effective programs in prevention, treatment, and health care which frequently face cuts due to budget limitations (Winkel, 2011). Preserving resources and offering alternatives to prescription medications will allow funding for programs that are effective in life quality and preservation.
The government’s new strategy is aimed at cutting the usage of prescription pain killers by 15% within the next five years. The plan will include training for doctors, increasing the focus on shutting down “pill mills’, and creating prescription databases in every single state. Gil Kerilowske announced that the National Drug Control Strategy will include the doctors who prescribe Oxycodone as well as other opioids go through training and proper prescription practices as a requirement. They have named the plan Epidemic: Responding to America’s Prescription Drug Abuse Crisis. The plan will also include media campaigns expressing the dangers of opioids. A majority of the plan will focus prescription drug data bases and enforcing more laws against “pill mills”.
This plan by the Director of the White House Office of National Drug Control Policy will be a great benefit to the health care industry. This plan is already in effect in 35 states, but every state needs to have the plan in place for the plan to officially work. A national database would assist health care providers and ensure that they are preventing duplication of prescription medications. The national database does need to ensure that it is following all HIPAA laws and regulations to ensure that patient information is not being given to outside sources.
The government is a major purchaser of prescription drugs primarily on behalf of the Medicaid program. Under the Medicare Part D benefit, the law specifically prohibits the government from participating in negotiations between drug manufacturers and the drug plan sponsors (Kaiser, 2010). The government is also restricted from imposing any kind of price control on drugs or trying to impose any kind of formulary drug lists for covered medications. With 22 percent of drug spending being done by the government, it would be considered a conflict of interest for it to be both purchaser and regulator of a prescription drug market with high fixed costs and low marginal costs (Kaiser, 2010). Currently under debate is the idea that shipping medications from other countries with cheaper medications would force the industry into lowering drug costs. Some countries like Canada have lower costs for common brand name medications, but importation is currently illegal. The problem with obtaining medication from other countries is that they are not subject to the same regulatory laws as in United States and are not approved by the FDA.
Many believe a drug reform is needed and is long overdue. By not having the government directly involved in control drug prices, the promotion of institutions that buy drugs effectively and are able to facilitate reliable drug information on medical treatments would best benefit those with public insurance coverage. Pharmacy benefit management (PBM) companies are able to contain costs by contracting directly with drug manufacturers to purchase bulk supplies passing on those saving through insurance companies. Patients would then have a greater accessibility of pharmacy services increasing efficiency of their drug benefits (Medco, 2011).
The prescription drug market is a billion dollar industry in America and it is vital that all regulations and controls are properly maintained. The United States Government has revealed the National Drug Control Strategy hoping to control and prevent the amount of drug use that occurs among the American population. The government is working on a new strategy aimed at cutting the usage of prescription pain killers by 15% within the next five years. There is a major debate on shipping medications from other countries with cheaper medications that would force the industry into lowering drug costs. Prescription drug use and control is a major topic between government agencies and officials and control over this market will take time and patience for it to work.
Brandon is a junior in college studying Health Care Administration. Check out his site Four Wheel Drive Lift Kits to see all of his Tuff Country Lift Kits