Competition in the drug market doesn’t stop drug prices from rising, but instead seems to encourage it. In a recent article published in the Wall Street Journal, Jonathon Rockoff comments on the alarming health care trend, stating:
“For years, Pfizer and Lilly have taken increases on their erectile-dysfunction drugs within weeks of each other—sometimes even on the same day—keeping the list price of each pill within a few dollars.”
Many other companies also raise prices almost in lockstep of each other, only increasing the severity of a controversial problem within the drug industry.
With these rising prices, many patients cannot afford the expensive drug they need. However, most people often stay with the drug they know works without looking into cheaper options. This results in the employer covering the majority of the costs after the deductible is met by an employee.
Drug companies should not be rewarded for increasing their prices on drugs. It is time for employers to push back on these rising prices and find practical solutions that still meet their employee’s needs.
Read the article, Drugmakers Find Competition Doesn’t Keep a Lid on Prices, from the Wall Street Journal for more information.