The Rising Cost of Prescription Drugs: Is Price Control the Solution?
This article explores if price control is the right solution for the rising cost of prescription drugs or it is better to find an alternative.
The prices of prescription drugs are increasing rapidly and to control them the government has put forward the price control strategy to ensure affordability of medications.
However, price control is not much beneficial and has certain cons such as reduced availability of certain drugs and less incentives for pharmaceutical companies.
Let's discuss it in detail!
Rise in the Cost of Prescription Drugs:
Top Reasons
Rising prices of prescription drugs are compromising the public health and there are different factors responsible for high cost of prescription drugs such as research and development expenses. Moreover, patent protections and marketing and advertising are equally responsible for this hike in price. All these factors are making it difficult for people to afford prescription drugs.
Price Control: Permanent Fix or Pitfall
Price control means those government regulations that are proposed to limit the maximum price of prescription drugs. It is a solution to the increasing prices of prescription drugs and is beneficial in the following ways:
Price control provides a ceiling on prices, which makes the medications more affordable to people
It also reduces financial burdens on patients and healthcare systems.
Price control also encourages competition and innovation among pharmaceutical companies.
Moreover, it also addresses price gouging and profiteering.
On the other hand, price control has some disadvantages, which makes it an unnecessary evil. Let's take a glance at them:
Price control leads to shortages and reduced availability of certain drugs.
It stifles innovation and research due to fewer incentives.
It also creates black markets or illegal trades.
Thus, there is a need for alternative solutions to solve this problem permanently, such as value-based pricing.
The Bottom Line
Wrapping things up, implementing price control on prescription drugs will only provide a temporary relief from the rising cost of prescription drugs. Therefore, a comprehensive solution which involves addressing the underlying issues that are responsible for these rising medication costs needs time. A balanced approach combining price control with incentives is now necessary to ensure affordable access to medications.
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