Healthcare Drug, Device and Product Pricing: A Pragmatic Solution for America.
America has a complex and convoluted manufacturing and distribution pipeline that regulates medication prices in the country.
As of right now, American’s have the option to look at different pharmacy options in order to try and find cheaper medication prices for themselves as to not break the bank while trying to improve the condition of their health.
The aim of this solution is to streamline distribution and manufacturing models, give everyone access to a price registry so that they know what they should be paying.
Of course, people could also consider the other options for some medical needs, such as how people can access a Maine medical cannabis card online and have a variety of choice of dispensaries with that card in hand.
This will allow medical insurers to better price insurance, while ensuring that manufacturers, distributors and dispensers do not price gouge.
One factor that seems to be having an impact on healthcare product pricing is the ongoing opioid epidemic.
In case you were not already aware, some of the effective medications that exist to treat opioid use disorder such as methadone, buprenorphine, and naltrexone all seem to be rising in price as a result of a sharp increase in demand.
Correspondingly, you can learn more about treating opioid addiction on the Enterhealth website.
For now though, let us discuss the manufacturing and distribution pipeline that regulates medication prices in America in more detail.
This pricing model applies to Drug, Device and Product Pricing.
Trade/Brand name medication – MCC (Medication Cost Control.)
If a healthcare manufacture or its subsidiary sells and/or manufactures a trade/brand name in any country other than the USA, the lowest sales price globally will be the registered sales price in America. The same applies to any product manufactured under licensing agreement.
GMC (Generic Medication Cost Control)
- Anyone licensed to manufacture can produce generic medication.
- Generic Medication may not be retailed for more than manufacturing cost +15%.
- Anyone dispensing generic medication above the 15% mark-up will be fined at $15,000 per infraction on each sales unit or 50% of the sale, whichever is highest.
- Distribution costs may not be added to generic medication.
- All trade/brand name medicines may be substituted for generic medicine. Government subsidized medical aid must prescribe generic medication.
MPR (Medicine Price Registry)
A Medicine Price Registry will be established in the USA to regulate medicine prices. Everyone will have access to this registry for the purposes of:
- Knowing what to pay for a prescription from your doctor.
- Finding possible generics for a branded medicine.
- Ensuring that Americans are not being overcharged for medicine.
SEP (Single Exit Price)
The single exit price (SEP) mechanism in America lists the maximum price that a medicine can be charged at. Dispensers may charge an additional dispensing fee depending on the price of the medicine. The Medicines and Related Substances Act allows for the following charges (excl state Tax):
- Where the SEP is less than $80.00, the maximum dispensing fee is $7.04 + 46% of the MRP.
- Where the SEP is less than $200.00, the maximum dispensing fee is $18.80 + 33% of the MRP.
- Where the SEP is less than $799.99, the maximum dispensing fee is $59.83 + 15% of the MRP.
- Where the SEP is greater than or equal to $799.99, the maximum dispensing fee is $140.00 + 5% of the MRP.
We would like to hear from you, is this pricing structure adequate?