The rising cost of generic medicine
On the July 28 show Dr. Jones discussed what is becoming a more and more common problem, and that is the rising cost of GENERIC drugs. Most of us have heard about the rising cost of the brand name pharmaceuticals, but with 8 out of every 10 prescriptions written being of the generic variety, generic cost is a huge issue. There are several thoughts as to why the costs are rising, but it mainly boils down to a couple key themes. Firstly, there is reduced competition, meaning a smaller number of generic manufacturers are out there. If there was more competition in the market, it could potentially drive down costs. There is some question as well, as if those small numbers of manufacturers are colluding to price fix. Secondly, the complexity of the pharmaceutical industry, with many layers of middle men between the patient and the medicine, has led to a loss of accountability. Finally, with most generic manufacturers relying on overseas factories which can be shuttered at any time, limiting supply.
For more details, listen to the show.
Here are the articles Dr. Jones referenced: