Sarah's Hot Take: Money Might Not Buy Happiness, But It Buys Good Health

It was the era in American history where the most essential, life-saving drugs are monopolized; the pharmaceutical companies were continuously conducting price hikes, leading 1 in 10 of adults to not be able to afford the medicine they so direly need(“Can't Afford Medications”). In this time period, the overpricing of pharmaceuticals were leading consumers to pursue contaminated alternatives, putting financial strains on hospitals, and creating medical unrest in the nation.

Does the time period sound familiar?

It should...it's the status quo.

Exorbitant prices in the medical world are leading to a drastic lack of accessibility for these drugs among Americans. Price controls are an appealing solution to this issue; however, many are opposed to the implementation of price controls because many claim that it would hinder research and development and create drug shortages. While these concerns are well-intentioned, it’s not the whole story. Currently, in the status quo, the pharmaceutical industry is monopolized, where companies are increasing the prices of drugs as they see fit. To promote drug affordability and cut down on attaining illegal drug alternatives, the United States federal government should impose price controls on the pharmaceutical industry.

As drugs are incorporated in the daily life of Americans, the monopolized pharmaceutical industry have unjustly caused price hikes for drugs. The Centers for Medicare and Medicaid Services indicates that from July 2013 to July 2014, the prices of more than 1,200 generic drugs increased by an average of 448% (“Budget Breakers”). If prices are exponentially increasing, how are consumer supposed to afford these drugs? Essentially, price controls impose a set price for each generic and brand name drug. Thus, the prices can unjustly raised which leads to accommodating prices, increasing affordability. To ensure that consumers can afford drugs in the pharmaceutical industry, price controls are the most effective solution and the Elsevier World Development Journal corroborates this when they explain how price controls can help limit the effect of monopolies because they result on average in a 20% price reduction (“International price discrimination: The pharmaceutical industry”). In order to promote the affordability of critical drugs, price controls prevent pharmaceutical companies from abusing their power by making profit off of unreasonable prices.

A common argument against price controls is that they decrease the funding of research and development (part of the pharmaceutical industry), which helps develop new and innovative drugs for consumers. However, the burden of funding new drugs actually falls on the public rather than pharmaceutical drug companies. According to the British Medical Journal, more than 80 percent of all funding for basic research to discover new drugs and vaccines come from public sources (Light, “Pharmaceutical Research and Development: What Do We Get for All That Money?”). Thus, the R&D budget is not impacted by price controls because majority of the R&D budget is made up of public funds rather than company profits. Additionally, another misconception about price controls is that they lead to drug shortages because lowered prices means lowered supply of goods. However, in a first-world international study, BMC Health Services Research, they reviewed the shortages in countries with price controls and they have determined that it was caused by other factors including problems with production, impurities found in syringe, and possible contamination, but price controls did not cause them (Pauwels, ““Drug Shortages in European Countries”). Additionally, by imposing price controls, affordability will be increased which means more access to drugs. All in all, while research and development and accessibility are serious concerns, neither will be affected negatively because they are not correlated directly with price controls.

The overpricing of pharmaceuticals is leading consumers to pursue illicit alternatives. In an article from 2017, Vox News notes that around 2 and 8 percent of Americans already illegally turn to foreign pharmacies to save on the cost of their medications (Belluz, “Booker is wrong about the safety of drugs from Canada” ).Foreign pharmacies claim to operate in Canada, but in a study from 2017, the National Association of Boards of Pharmacy reviewed 108 pharmacy websites that used “Canada” URL and found that 74% source drugs from countries outside of Canada (“So-Called “Canadian” Pharmacies are a Danger to Consumers, NABP Reports”). None of the websites included in the study require a valid prescription; moreover, sourcing medications from countries without sufficient regulation and oversight exposes patients to medications that are not approved by the FDA or Health Canada. The risk that these imported drugs are counterfeit, contaminated, or sub-potent is high, and quality assurance is a major concern. By making domestic drugs more affordable, price controls can prevent consumers from turning to more dangerous options on the black market.

All in all, price controls effectively solve the issue of affordability and accessibility for the consumers requiring drugs from the pharmaceutical industry; they allow prices to be affordable and ensure that citizens don’t pursue illegal, unsafe alternatives in foreign countries. Providing healthcare to all American citizens should be a moral and political obligation for the U.S. government, and continuing the unjust prices of drugs in the status quo is unacceptable.

It is the era in American history where reforms need to be made to the pharmaceutical industry; American citizens, in the status quo, should be able to afford necessary drugs for quality health. While, money might not buy happiness, it most definitely buys good health.