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  • Writer's picturerbm

Why do medications cost so much? (II)

Updated: Jan 13, 2022

Newly developed medications are a granted a period of patent protection by the government, during which time they can set the price they want, and no other companies can produce the same drug. Even if there are drugs in the same class with the same efficacy, there is not enough competition to lower the price substantially, though it is always worth checking to see if a similar drug might cost less. There is always a price for convenience. A new, extended release drug that you take once a day will cost much more than a generic drug you must take multiple times per day.

Pharmacy Benefit Managers control the market for these expensive trade drugs in a government-approved kick-back scheme that would be illegal in any other business. They hold hostage the payers, the manufacturers, and the patients. They determine what drugs are on your insurance company's formulary; they add about 33% to the cost of your prescription; they provide no benefit to you.

Watch this video to find out more.

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Good Rx won't help as much, but the price does vary, so is worth shopping around with GoodRx or by any other means.

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