Which Factors Influence the Cost of Medicines?

In the present scenario, a consumer is completely bombarded by advertisements shown on television, newspapers and magazine ads that suggest of a new breakthrough in the field of medicine or the 'first' or 'only medication' of its kind etc. The direct-to-customer concept of advertising is a very persuasive means for the promotion of a medication convincing consumers that the newer treatments are superior to the already existent prescription drugs. Although, newer medications may offer benefits which are superior in nature over older treatments, it is important to make a note that there are always alternatives that might be available that offer the same clinical results at a reduced cost. Because certain generic manufacturers may lack the ability to advertise their products effectively, consumers are left unaware of alternative low cost treatments that may be available.Advertising is the biggest and the single largest factor that influences the cost of prescription medicines. The direct-to-consumer approach of advertising and marketing of medicines to physicians has not only increased the cost of drugs, but has also influenced the patterns of prescription. Manufacturers employ drug marketing executives to aggressively promote products to physicians. In most cases, the marketing materials that a pharmaceutical company provides are the single source of information regarding a new drug for a doctor. Also, because the information is provided with the intention of increasing sales, this information seems to be more biased. Generic medicines that are not promoted tend to be less recommended as the physicians themselves are not aware of their availability. Also, healthcare providers hand out free samples in large quantities. This may lead to an increase in the number of prescriptions of brand name products as compared to generic ones.In our society, we tend to equate high costs of medicines with better quality. It is a general trend wherein consumers believe that since it is costly, it must be better. This is not the case with prescription medicines. Studies have shown that inexpensive medicines that are generic have been in the market for quite some time and were found to effectively reduce blood pressure than most expensive brand name medicines. Such compelling evidence makes us question why patients end up paying more for therapies that have otherwise cheaper alternatives. Consumers need to realize that just because a medication is expensive; it does not mean that it is better. Not only are generic medicines cheaper than brand name medications, they have also been in use for a longer duration and thus have a proven track record of its safety and efficacy. Newer medications do not have such a proven safety profile and need to be tested across a wide population spectrum in order to observe its adverse effect or side effects.


Not only are generic drugs significantly less expensive than brand name medications, but generics have stood the test of time and usually have a proven track record of safety and efficacy. On the contrary, new medications do not have a proven track record of safety and efficacy. They may not have been tested in a large enough population to observe rare side effects.Few Tips to minimize your medication costs:1. Remember that new or expensive drugs need not always be the best option. Ask your physician to prescribe alternative medicines of cheaper generic brands.2. Ask your doctor if the medication is extremely necessary. For example, as people age, they tend to rely more on sleep medication. The truth is, we need less sleep as we grow older and hence feel that we are suffering from insomnia. In such a scenario, your physician may agree that such medication is not required.3. Express your concern over excessive advertising of a particular brand of medication in a patient waiting room.4. Ask your physician if there are cheaper OTC (over-the-counter) products which are available and which might provide the same results as that of prescription medications. Often these OTC drugs would be cheaper than the prescription ones.In the past few years, drug costs have increased rapidly and have outpaced inflation as well. Rise in the price of drug costs is one of the largest reasons for increase in the cost of healthcare. Although it is not possible to stop the rising costs of drugs, you can work closely with your physician to minimize prescription drug costs while maintain your health effectively.