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Friday 8 June 2007

Prescriptions - Who Pays?

Who should pay the high cost of new drugs: Patients or governments?

Historically, citizens of liberal democratic states who have more of a socialistic point of view when it comes down to the distribution of goods and services to their citizens seem to explain the benefits they are to receive as FREE. I say this to make the point that at the end of the day, the government does not have any resources in and of itself. Resources are supplied to the government by the revenues generated from hard working citizens. Therefore, the citizens, or for this example, patients, will have to pay for the prescriptions either directly, out of their bank account, or indirectly through higher taxes that will be required to pay for the prescriptions, therefore they are not free. To specifically answer the question, the high cost of new drugs must be for the most part paid by the patients themselves, since at the end of the day, they pay directly or indirectly as mentioned above anyway. Also, the government has proven historically to be very inefficient in processing and delivering many services, many times paying well over market value for said products and services, whereas consumers, through the free market system, many times receive much greater value for their money.

However, it is recognized that there is a need for a safety net for those who LEGITIMATELY cannot obtain the medication because of their possible current situation. In these cases, many charities, churches, non profit organizations, extended families, etc. have resources available to help. Once these avenues have been exhausted, it may be necessary to use the resources government has been given, through taxation of the citizenry, to help pay for the drugs.

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