Cost of prescription drug

Insurance plans around the world that had traditionally covered the full cost of prescription drugs have begun, in the last decade or so, to impose either deductibles or various forms of tiered cost sharing on patients. 

Avorn, Jerry. 2004. Powerful Medicines The Benefits, Risks, and Costs of Prescription Drugs. New York Alfred A. Knopf... 

Avorn J. Powerful medicines the benefits, risks, and costs of prescription drugs. New York Knopf 2004. 

Although concerns about the high cost of prescription drugs and the lack of access to needed drugs dominate much of the discussion, others point to the opposite problems. They say the benefits of prescription drugs are overstated or overhyped. The public has too much access to prescription drugs... 

PhRMA, What Goes into the Cost of Prescription Drugs Washington, D.C. Pharmaceutical Research and Manufacturers of America, 2005. Also available online. URL http //www.phrma.org/files/Cost of Prescription Drugs.pdf. Downloaded April 4, 2009. 

PhRMA. What Goes into the Cost of Prescription Drugs p. 2. 

More than most states, Maine has passed innovative and comprehensive prescription drug laws and policies. As a result, the state has received national attention. A report from the NCSL summarizes its laws to control the costs of prescription drugs ... 

The Supreme Court allows a Maine law to go into effect that requires drug companies participating in the state Medicaid program to pay supplemental rebates. The rebates reduce the costs of prescription drugs for non-Medicaid drug users. 

June 22 An agreement between President Obama and the pharmaceutical drug industry proposes to reduce the cost of prescription drugs for Medicare beneficiaries by partially covering the donut hole, or the out-of-pocket expenses paid when purchases cost more than 2,700 and less than 6,154. 

Cost sharing affects the total cost of prescription drug benefifs in two ways It affects the amount paid for each prescription, and if also affecfs utilization. According to the law of demand in economics, as price increases, demand fends to decrease. In fhe case of drug prescriptions, price is the member s out-of-pocket expense. As cost-sharing (i.e., out-of-pocket expense) increases, utilization decreases. 

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