Economic Implication of Prescription Drug Coverage and Generic Drugs
The prices of drugs have been increasing over years. The increase has serious but different economic implications to individuals and the health care system.
Individual Point of View
The prices of prescribed drugs have been increasing at a faster rate than the rate of inflation (Congress Watch, 2003). Thus, the drugs put excessive pressure on consumer disposable income. The increased cost of medication reduces the money available for spending on other products. Thus, prescription drug coverage has a negative impact on the economic wellbeing of the people. The generic drugs are priced at a lower price. Thus, they provide a viable alternative to ...