Tuesday, January 25, 2011

What Should I Do Lost Bet

Medicines: market failures

The Health Ministry has just released a study showing that, although they have waived taxes for eight years, the cancer medicine rather have gone down in price. The same Ministry of Health conducted a similar study in 2005, reaching similar conclusions. Another study conducted by AIS-Redge few months ago, showed that the FTA with U.S. pharmaceutical companies had failed to pay taxes but had not reduced their prices.

In a competitive market, tax cuts should be moved to the final price. What happens here is that competition in the market for medicines is very limited. The main reason for this is that the decision to buy one product over another does not pertain mainly to consumers. The main decision making not the buyer, taking his doctor, that is not paid.

addition, consumers can not easily see the quality of medicine, know this requires repeated laboratory tests hundreds of products. Even after taking a medicine, if we do not heal, that can be caused by many other factors. Finally

are patents, which provide legal monopolies for terms of 20 years or more, and they do that even after the deadline, the original brand name drugs have a very advantageous position in the market.

The large drug market failures justify government intervention. The quality of all medicines should be ensured by tests carried out periodically and necessary technical efficiency. As consumers have a hard time deciding, state regulation should encourage competition, for example through the use of international nonproprietary name or generic name that is legally binding in any prescription, and allows consumers to choose between medicine chemically equivalent. But there are several other aspects in which the market should be regulated under consumer protection.

a couple of years ago, affected by a throat infection, I bought three pills of azithromycin for 5 soles. Less than a week later, the same chain of drugstores wanted me to sell the same chemical, but brand, for 45 soles. Thus, consumers end up paying little price alerts abusive or just leave it to purchase products they need to regain their health.

State and consumers and health professionals, we still have much to do for the right to health is not impaired by drugs too expensive.

http://www.diariolaprimeraperu.com/online/columnistas/medicinas-mercado-con-fallas_78684.html

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