Prescription costs
Prescription costs contribute to the rising cost of health care.
While many factors have contributed to the continuing increase in
health care costs, U.S. drug companies have played a significant role.
- Advertising:
Drug companies spend billions of dollars advertising their brand-name prescription drugs directly to consumers-in newspapers, in magazines, and even
on TV. They
want to make their brands household words. The fact that you know names
such as Prilosec, Lipitor and Viagra is good for the drug companies, but
not good for your checkbook.
- Research and development:
Drug research costs money.
The research required to produce a new drug (including studies to prove
a drug's safety and effectiveness) is more complicated, and more
expensive, than ever.
- Corporate pressure:
Drug companies must try to increase
their profits every year. Stock market pressure and the expectation
that a publicly traded company will increase its profit year by year
mean that drug manufacturers have to increase the price you pay for
brand-name drugs.
