Drug Pricing and Affordability

Introduction

Access to health care is a fundamental right, but the rising cost of prescription drugs has made it challenging for many people to afford the medications they need.

This is particularly problematic for elderly individuals who often have multiple chronic conditions that require multiple medications. With many no longer working and relying on pensions, they may have limited financial resources.

Why Drug Prices Are Rising?

Newly developed drugs can be expensive to produce.

During patent exclusivity, prices are set higher to offset the high research and development cost (up to billions of dollars).
This pricing practice is often rationalized as necessary to reward the pursuit of a high-risk, capital-intensive endeavour.

Additionally, many middlemen are involved in the drug supply chain, each taking a cut of the profits.

In Malaysia, Bumiputera agents charge a fee of between 2-3% for passing tender documents from supplier to government.
Mark-up costs are added by both distributors and pharmacies.

Lack of price transparency mechanism, with manufacturers sometimes charging different prices to different payers.

Pharmaceutical industry also spent a lot of money on marketing.
Confidential price discounts prevents everyone from demanding the lowest available price.
Malaysia government is working on a drug price transparency mechanism, which will allow the government to set a "fair and reasonable price" for medications after considering the actual medication development cost.

Pharmacist Roles

Help patients understand their medication costs and find ways to save money.

Suggest generic alternatives to brand-name drugs, which can be much cheaper.
Help patients find prescription assistance programs that can help cover the cost of their medications.
Work with insurance companies to help patients get the best coverage for their medications.

Provide education on how to use medications properly, which can help reduce the need for additional medications or treatments.

Summary

The issue of drug pricing and affordability is complex and requires a multifaceted approach.

The high prices drug makers charge for branded drugs may not always be related to affordability issues patients face.
Many consumers may still face affordability challenges even for drugs with generic versions.

Bridging the gap between medical innovation and affordable access for all remains a challenge.

To illustrate, the costs of oral targeted therapy for cancers can be prohibitively high, forcing patients to choose between draining their (or sometimes, their family) life savings and assets to afford treatment, or simply accepting their fate and leaving their wealth to their heirs.

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