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Generic Drug Price Increases Impact the Affordable Care Insured


The enactment of the Affordable Care Act (ACA) 2010 as part of the The Patient Protection and Affordable Care Act (PPACA), commonly referred to as ‘Obamacare’ initiated broad reforms in the U.S. healthcare insurance market, as well as pricing on prescription drugs. The pharmaceutical industry has witnessed a significant rise in prices in the past year.


The result: insurance companies are refusing to pay for price increases that would have likely been covered under the Act.

In spite of the proposed universal affordable care promised to Americans in exchange for mandated enrollment in a healthcare insurance plan, corporations are fighting back. Price increases in the pharmaceutical market reflect this trend. According to some analysts, the system is still not working because the threat to profits. With supply and demand askew once again, patients are not seeing significant savings in pharmacological care.Photo:  breitbart.com

Pharmaceutical Market Trends

The rising prices of generic drugs is a barometer for prices in pharmaceuticals in general, and the potential that inflation in meds will continue to plague healthcare consumers is high. If insurers are not willing to pick up the tab on higher priced medication, it is obviously up to the patient to pay out of pocket for pharmaceutical prescriptions. Some generic drugs have increased more than twenty fold in price. No reimbursements means no change savings to patients overall.

The demand for prescription drugs obviously remains a sticking point for many patients when shopping insurers, yet the fact is that if prices continue to escalate, it is highly probable that insurers will eliminate or downgrade coverage in their service menus. With the price for doxycycline, an antibiotic drug costing over $1,000 for 500 capsules, up from $30 for the same bottle a year ago, it is easy to see how consumers are cornered in terms of type of insurance policy. Insurers unwilling to offset price increases on drugs also reserve the right to deny coverage over designated limits.

While prescription drug prices appear to be veering out of control, overall medical costs nationwide have stabilized in the past two years. Cost containment for meds and specialized treatments is foreseen for near future policy debate. For beneficiaries of the Affordable Care Act, the transition has established the premise of affordable care. Failure to sign up for mandated health care insurance by U.S. citizens prior to March 31, 2014, now carries Internal Revenue Service (IRS) penalties of $95 or 1% of annual income, whichever comes first.

Prescribing Change in Health Care Reform

The outcomes to health care reforms and their impacts on the price of prescriptions is evident. According to the Congressional Budget Office, health care spending under the Affordable Care Act is expected to add 30 million new individuals to insurance rolls reflecting 22% of U.S. GDP by 2038. For the pharmaceutical sector, the Act is set to be deep pockets payoff. Projected profits from new health care insured are expected to increase $10 billion to $35 billion in the next ten years.

The Affordable Care Act is enforced with the goal of creating the conditions for better quality health care at a lower insurance rate than was previously available to medically underserved Americans. The expansion of public and private health care insurance coverage policies and reduced cost of treatment for individuals were the two objectives behind the reform. The increase in pharmaceutical drugs was a predicted outcome, but not a result that has satisfied supporters of the Act and its design.

Online Pharmacy Discounts

Patients searching for better priced prescription drugs will find discounts in bulk purchases through distributors. Those insured can visit a pharmacy online to compare the price of generic drugs through a wholesaler. When searching for a better deal in pharmaceutical drugs, an online pharmacy may be the best solution to reducing the cost of prescription treatment, even in cases where an online pharmacy does not accept insurance coverage for prescription drug orders.



Lee Flynn is from the Wasatch Mountains near Salt Lake City, UT. After Lee spent years preparing himself, his home and his family, he decided he had to do more. In his free time, Lee helps educate those who want to do the same. Through small local workshops and articles, Lee trains and teaches others on home preparation, food storage techniques, wilderness survival and self reliance. After obtaining a bachelors degree from the University of Utah, Lee moved to the Salt Lake Valley where he now lives with his wife and daughter.



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Photo:  breitbart.com