State Regulation on the Prices of Pharmaceutical Products
Pharmaceutical products have become expensive over the years hence making it difficult for some individuals to access the drugs for medication. Pharmaceutical companies have not been in a position all along with disclosing the way of pricing of the produced pharmaceutical drugs. Hence the companies end up making huge profits at the expense of desperate individuals like those on prescribed medication. In the recent past, the Governor of Colorado by the name Jared Polis went ahead and implements a drug policy that will control the price cap on insulin to make the prescription medicine more affordable to the people in dire need of emergency drugs. The Texas State is also on the move to implement the same amendments on the regulation of the pricing of the pharmaceuticals (Chandry et al, pp. 442-453). The State wants the price hikes of the medicines to be disclosed to ensure there is transparency in the pricing of the said medicinal products. Though the pharmaceutical companies came up and objected to the move by the State saying that they are unfairly targeted saying that they are only a part of the broader product supply chain. This paper will address the need for pharmaceutical companies to be regulated based on facts and opinions from the relevant database, and if the move is a risky engagement by the State.
Pharmaceutical drugs are medications used to treat, diagnose, or instead prevent the spread of diseases. The medicines are prepared by pharmacists who are scientists that have specialized in the production of pharmaceutical drugs through chemical synthesis and other artificial processes. Pharmaceutical science is a branch of pharmacology that deals with the discovery and production of drugs that cause an endogenous physiological or biochemical effect on the entire aspect of human anatomy formulations (Schwart et al, p. 333). Therefore the process of production and formulation of drugs is a complex process that requires massive investments primarily in the past. In recent times the advent of new technology has eased most of the drug production works. On that note, the pharmaceutical companies are supposed to lower the purchase price instead of using prices quoted in the past. They are required to disclose how they set and arrive at the final prices on supplied medicines. On neglecting price reductions and disclosure on their products, they end up benefiting at the expense of an ordinary citizen who is terminally ill and survives on prescription drugs (Baye et al, pp. 1179-1190). Hence with the escalating prices, the patient will not be able to survive for long, especially if they do not have a medical cover or stable source of income. In most cases, those patients suffer the most since most of them are unable to secure an annual purchase of recommended drugs by a pharmacology specialist without running broke. Since they are only dispensed under the authority of a physician or a specialized nurse. Thenceforth, the government has to settle in to save patients from being overpriced by the scrupulous chain of drug lords that work closely with the various pharmaceutical companies to alter prices.
Pharmaceutical companies invest massive capital in drug creation, discovery, and development since the endeavor is expensive and sophisticated at the same time. The process of drug creation does not have any government intervention since the venture requires medicinal expertise and wellness to be able to produce suitable drug candidates. On the other hand, the process of drug development determines the commercialization of a particular drug once a lead compound has been identified for efficiency production. The government then comes in and analyzes the impact and demand of the drug established as well as the significant side effects associated with the drug (Nontoya, Isaac & Elda, pp. 279-289). The move will allow the government to determine if the drug will be released in the market and, if not, then under what suitable conditions. The State also determines how the pharmaceuticals will be marketed and which marketing strategies will be used that will not exploit or entice the vulnerable consumers of the awaited product. Most authorities are not concerned or do not follow up on the pricing of the drug to the last chain to see what price has been patched on the final consumer and if it is standardized and affordable. The process of drug production and marketing is long and tedious, making pharmaceutical companies take advantage of hiking their prices. The government then needs to be vigilant from the production stage to the final consumer stage, and also implement policies that will govern the same process.
Texas is on the move to pass the Bill on transparency on the pharmaceuticals drug prices to control the costs from shifting to certain thresholds. The government will instruct the pharmaceutical companies to explain if a drug price surpasses a certain set threshold. The Bill will prohibit the wholesalers from increasing profit margins of the drugs over specific limiting points. The Bill requires pharmaceutical companies to always document by disclosing a price hike in case the medicinal drug’s listing price has increased by 50%. Furthermore, the lawmakers tightened the Bill by suggesting they publish a price hike report when they price beyond 15% of the regular set price. The Bill is believed to be the strongest that the State has passed over the years since it will help those with financial incapability. Many people have applauded the local government in considering such a vital bill for implementation. The price hikes of different pharmaceutical firms will be documented on the website of the United States Department of Health. Hence the public could be able to visit the site and observe the recorded price indices. The governor of Texas was once quoted saying that he is waiting for the Bill to reach his office, and he will not hesitate to sign it into law.
When the Bill passes into law, then the respective prices being posted on the verified government website, the lawmakers will be able to monitor the price ranges and advocate for necessary measures to be done if the prices go beyond the set threshold. However, the manufacturing companies are objecting to the local authority’s move, saying that they are the only stakeholders who are targeted out of a vast chain of distribution on the upfront. Therefore, it is clear that the companies are worried since they will not enjoy any more supernormal profits from the drugs (Davis, p. 199). This is because no external force has come out in the open and defended them concerning the move made by the government. They were used to regulate and dictate prices on pharmaceutical products, not knowing that many people are suffering from the high costs of the medicines. Even some consumers are forced to ration their prescription drugs due to the inability to access it continuously. Therefore the move by the government is to ensure those people are taken care of medical-wise. Since the gap between the rich the poor keeps on increasing, the government needs to intervene on specific measures that cut across the social class realm to provide quality and affordable health service for all the citizens.
The protocol for prescribing a drug to a patient should be well determined and controlled to prevent patients from taking advantage of the passed Bill to abuse drugs. Since the prices of pharmaceutical drugs are going to be monitored, the State should also set vigorous measures that will be employed when subscribing medications to patients and the progress and behavioral habits of the patients. If the move of the government of Texas is not implemented with caution, maybe the number of opioids drug addicts can exceed that of 2016, which caused most deaths as a result of addiction to drugs. Furthermore, as the people warmly receive the amendments of the Bill, they need to figure out where the catch is and try to avoid the purchase of unnecessary drugs (Jorgensen, pp. 561-570). Others may engage in unlawful acts of going for the prescribed drugs and sell them to third parties for business gains. Such activities may be dangerous, especially to the young generations who are the main targets of the smugglers. On that note, the move by the Texas State should not be accorded 100% acceptance. There are emerging issues that will eventually come up; hence proper analytical measures of the situation need to found. The presidency of the United States has formulated a rule that will help to reduce the price of the prescribed drugs from a wider perspective. While that is a definite goal of realizing a possible health care measures in the long run, the government should put in place strict standards and procedures to be followed for a person to be given a drug subscription deal.
Works Cited
Baye, Michael R., Robert Maness, and Steven N. Wiggins. “Demand systems and the true subindex of the cost of living for pharmaceuticals.” Applied Economics 29.9 (1997): 1179-1190.
Chaudhry, Peggy, et al. “The pharmaceutical industry and European Community integration.” European Management Journal 12.4 (1994): 442-453.
Schwartz, Victor E., et al. “Marketing pharmaceutical products in the twenty-first century: an analysis of the continued viability of traditional principles of law in the age of direct-to-consumer advertising.” Harv. JL & Pub. Pol’y 32 (2009): 333.
Montoya, Isaac D., and Elda Jano. “Online pharmacies: safety and regulatory considerations.” International Journal of Health Services 37.2 (2007): 279-289.
DAVIS, JM. Contested ground: Public purpose and private interest in the regulation of prescription drugs. Oxford University Press, USA, 1996.
Jorgensen, Paul D. “Pharmaceuticals, political money, and public policy: a theoretical and empirical agenda.” The Journal of Law, Medicine & Ethics 41.3 (2013): 561-570.