Cost of Pharmaceutical Needs Equals the Quality of Life - Business Research Paper (600 Level Course)
Cost of Pharmaceutical Needs Equals the Quality of Life - Business Research Paper(600 Level Course)
According to research done at Purdue University, the more expensive a person’s pharmaceutical, the better quality of life the patient had. This happened no matter what the person’s ailment. Retail sales of prescription drugs totaled $154.5 billion in 2001; the Centers for Medicare and Medicaid Services estimate that, by the year 2010,
the nation will be spending $404.5 billion annually for this purpose. Medicaid spending on prescription drugs tripled during the 1990s from $4.8 billion in 1990 to $17 billion in 1999. Pharmaceuticals have risen 7.4% more than inflation annually. According to the latest statistics available from the Bureau of Labor Statistics, wholesale prices of prescription pharmaceuticals have risen over 250 percent since 1982 (in comparison to the producer price index for all commodities, which has risen 40 percent over the same time period).
US consumers pay more for their pharmaceuticals because in many other developed countries, the government bargains with ‘Big Pharma’ to achieve the best prices available. Because of this, Americans are left to make up the difference. It is no surprise that many of the biggest firms in terms of net profit are pharmaceutical and bio-engineering firms.
The issues involved with allowing Americans to import their drugs from Canada are that the major pharmaceutical corporations have donated extraordinary large amounts of cash to both political parties. This has allowed big pharma to turn the potential tide of mass importation. However, states with the always hungry Medicaid beast, have decided to import their drugs for government employees from Canada. The response from the Federal Government has been to substantially increase its powers that have been Constitutionally left to the states. These include, the Terry Shaivo law, the increase in federal corporate laws, the re-chartering of large banks to federal rather than state