Drugs, Money, and Secret Handshakes: The Unstoppable Growth of Prescription Drug Prices

Robin Feldman's book Drugs, Money, and Secret Handshakes reveals the pharmaceutical industry's web of shadowy deals, where higher-priced drugs receive favorable treatment and patients are channeled toward the most expensive medicines. This system of perverse incentives has delivered exorbitant drug prices and profits.

Format: Hardback
Length: 196 pages
Publication date: 11 April 2019
Publisher: Cambridge University Press

The warped world of prescription drug pricing is a complex and often controversial realm. Generic drugs, which are essentially the same as their branded counterparts but cost significantly less, can sometimes be more expensive than their branded counterparts. This phenomenon is often attributed to the fact that generic drug manufacturers must invest significant amounts of money in research and development to bring their products to market. Additionally, generic drug manufacturers may face limited competition, which can drive up prices.

On the other hand, older drugs can be relaunched at astronomical prices, often after years of being off the market. This is often done by pharmaceutical companies seeking to capitalize on the nostalgia and brand recognition associated with these drugs. However, these relaunches can be controversial, as they can lead to higher prices for patients and limited access to affordable treatments.

Low-cost options for prescription drugs are often shut out of the market due to a variety of factors. One of the most significant factors is the high cost of drug development and marketing. Drug companies must invest significant amounts of money in research and development to bring new drugs to market, and they must also spend large sums on marketing and advertising to ensure that their products are widely known and sought after. This can make it difficult for smaller, less well-funded companies to compete with larger, more established drug companies.

Another factor that can contribute to the exclusion of low-cost options is the influence of middle players in the pharmaceutical industry. These middle players include insurance companies, pharmacy benefit managers (PBMs), and health care providers. These players establish coverage levels for patients and negotiate with drug companies to obtain the best prices for their patients. In many cases, these middle players may prioritize higher-priced drugs over lower-cost alternatives, as they may receive lucrative payments from drug companies.

This system of perverse incentives has delivered the kind of exorbitant drug prices that everyone loves except for those who pay the bills. Patients who rely on prescription drugs to manage their health conditions are often faced with high out-of-pocket costs, which can be a significant burden on their finances. Additionally, the high prices of drugs can lead to limited access to affordable treatments, particularly for those who are uninsured or underinsured.

In response to these concerns, there have been efforts to address the issue of prescription drug pricing. One of the most significant efforts has been the introduction of generic drugs, which have helped to reduce the cost of prescription medications. Additionally, there have been efforts to promote competition in the pharmaceutical industry, which can help to drive down prices.

However, the issue of prescription drug pricing is complex and multifaceted, and there is no easy solution. It will require a combination of government intervention, industry regulation, and consumer education to address this issue and ensure that patients have access to affordable and effective medications.

In conclusion, the warped world of prescription drug pricing is a complex and often controversial realm. Generic drugs can be more expensive than branded ones, older drugs can be relaunched at astronomical prices, and low-cost options are shut out of the market due to a variety of factors. By offering lucrative payments to middle players, drug companies ensure that inexpensive drugs never gain traction, leading to exorbitant drug prices and profits. It is essential that we work to address this issue and ensure that patients have access to affordable and effective medications.

Weight: 458g
Dimension: 160 x 236 x 13 (mm)
ISBN-13: 9781108482455