Question

According to a CBS news report, pharmaceutical manufacturers have increased drug prices at rates that are often five times that of inflation. Society ultimately pays the price of higher drugs, with many individuals losing much of their savings, sometimes just to cover the co-pays and deductibles.

1. Do you believe that pharmaceutical companies have a right to charge whatever they like?
2. Do they have a moral obligation to society, or is their obligation strictly to shareholders?
3. Do you have any ideas on how healthcare costs could be better managed?

Answer 1

A) Pharmaceutical companies do have the right to set the prices of the drugs manufactured by them, infact each and every company has the right to set the prices of the goods produced by them according to the costs incurred so that they can cover the expense,profit and margin.

However if they charge very much ,they are more likely to incurr loss because people will not buy it.

For eg: A pharma company is charging $5 for aa paracetamol tablet but another company is charging $25 for the same salt, people will definitely go for the one at $5 price as the salt present is same and both will give same effectiveness.

B) Yes they do have moral obligation to society as the society is the end user of the drugs, they are the consumers in this society who are going to buy the medicines be it at high price or low price.

They do need to look after the shareholders as well but if they merely look at the profits and the shareholder,the company will one day result in loss as there are several other competitions in pharma sector, other pharma company may sell the same product at lower price decreasing the sales of the former company. Moreover it is their duty to look after the citizens and provide them care with minimal costs rather than merely making profit out of them. It is their mere responsibility to counter the expenses and do kot charge unnecessary.

C). Healthcare costs should be managed in several ways

1. Get regular checkups: It is very important for evryone to get their bodies checked once in a year to prevent any prolonged disease as more the time a disease is stayed, more is the expense .

2. Get health insurance: To avoid heavy charges on healthcare make sure you get an insurance on health which will bear all your expenses ag the time of need. Otherwise the expenses on the disease will destroy the savings .

3. Avoid unhealthy food: To avoid healthcare expenses, make sure you avoid unhealthy food and consume only healthy things like fruits, vegetables etc.