Proper healthcare is a basic necessity for every citizen in the US. Numerous debates on healthcare systems have been in existence for decades. This paper will address the issue of drug prices in the US market (Wharton School of the University of Pennsylvania). Some people are advocating for the reduction of drug prices, claiming that higher rates discourage citizens from accessing them, an issue that negatively affects the US healthcare system. On the other hand, those opposing the reduction of prices mostly, investors, claim that organizations will be discouraged from developing new drugs which will make it hard for them to improve the healthcare system. According to House Speaker Paul Ryan, it is anticipated that the rate of introducing good new drugs will dramatically fall in 2018 if the prices are reduced.
In my view, I would support a price reduction in the perspective that citizens from poor backgrounds will be able to access the drugs causing equality in the healthcare services. Additionally, there will be increased life expectancy and reduced death rates. Generally, victims of severe illnesses such as cancer spend a lot of money on medication forcing most of the victims and their family members to become bankrupt. With the reduction of drug prices, such victims can maintain or even improve their living standards since they can easily access medication, and eventually translate to both economic growth and development.
Different levels of government have different roles and responsibilities to play when it comes to controlling the prices of drugs in the market as discussed herein. It is the duty and responsibility of the local government to improve security and infrastructures with the aim of attracting investors. These investors include drug manufacturers who will help reduce the market prices of drugs. They will also be mandated with the task of licensing distributors of these drugs and ensuring that they abide by the set laws and that their prices are competitive and affordable to the locals. They can also work with the state and federal government to ensure that local hospitals are stocked with enough drugs to cater to the needs of the residents. State governments, on the other hand, sets state policies used to control drug prescription through reforms such as increasing state negotiating powers, improving price transparency, and cracking down price gouging (Huelskoetter). They can also reduce their taxes and offer waivers to some of these manufacturers with the aim of reducing their production costs. They can also import cheap prescription drugs from other nations such as Canada and neighboring states.
In conclusion, the federal government under the executive branch negotiates on drug prices with pharmaceutical manufacturers. Additionally, it can reduce the taxes imposed on manufacturing companies to help reduce their operating cost. It can also set up a higher budget to cover for different health programs such as Medicaid with the aim of lowering the price to be paid for drugs by citizens. Lastly, this branch can work with other investors to facilitate institutes of research with the objective of developing and introducing new drugs into the market at a lower price. The legislature, on the other hand, can implement laws and policies guiding the sale of medicine. They can introduce policies such as setting price ceilings and floors. They can also introduce policies governing the market competition by regulating manufacturers and distributors. Lastly, the judiciary can be used to make sure that the set policies are met. They should ensure that laws are followed and punish lawbreakers of the set law.
Works Cited
Huelskoetter, Thomas. "State Policies to Address Prescription Drug Prices." Center for American Progress, 31 May 2018, www.americanprogress.org/issues/healthcare/reports/2018/05/31/451170/state-policies-address-prescription-drug-prices/. Accessed 14 July 2018.
Wharton School of the University of Pennsylvania. "Seven Key Issues Facing U.S. Health Care in 2018." Knowledge@Wharton, 4 Jan. 2018, knowledge.wharton.upenn.edu/article/the-future-of-the-aca/. Accessed 14 July 2018.
