The Competitive Market Model and U.S. Health Care

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The Competitive Market Model and U.S. Health Care Pharmaceuticals Government involvement and its pros and cons Pharmaceuticals plays a key role in health care, with health care being a social right it proposes government to be involved in the drug markets. States are responsible for maintaining the product safety, quality, efficacy, and keeping health costs fair to the society. Price consideration may be under government intervention. When government intervenes in pricing, it sets a standard price for the drug throughout the country so that everyone can have equitable access to these medications. This also includes the affordability range, and it stops unnecessary consumption, limits price growth to avoid excess societal burden. Government intervention varies with low- income developing countries to industrialized countries. In low income developing country, government’s focus is “how to improve access to their people”, whereas in industrialized nations direct some of their focus on cost-containment. Subsequently, government intervention also faces imperfections. It becomes complicated due to political manipulations. It is very difficult to successfully implement government intervention. It may result in some kind of overwhelming aspect in some countries with limited resources. After reviewing these negative aspects, there are many alternatives which can be used to achieve the same pricing control goal. It can be made through making shifts in the financial methods, such as the expansion of insurance coverage. “Price competition in the submarket can be enhanced through wider availability of information, the use of compulsory licensing for products with limited competition, and the use of generic names in prescribing and labeling” (Madrid, 2012). Ways of improving the
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