According to the Annals of Internal Medicine, individuals who rely on the typically low prices of generic drugs may be in trouble. A common heart medication, digoxin, increased in price by almost three thousand percent in only one year. Some of the factors that influence this change are manufacturing shortages, as well as manufacturer decreases. Both of these lead to a reduction in both production and competition. The increase in generic drug prices do not come from insufficient competition, although this is often times thought.
The researchers discovered this information by comparing the claims from health plans with market competition levels and price changes. All of the drugs were given levels of high, medium, or low. It was found the lowest level drugs would likely see an increase of almost fifty percent in a study period. Researchers believe that there would be value in studying the relationship between price and competition further.
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