Essay on the Evolution of Managed Healthcare and Drug Purchasing

This essay examines the evolution of managed healthcare and the role of government, particularly focusing on the United States' healthcare spending compared to other countries. It delves into the advantages and disadvantages of allowing patients to purchase drugs outside the price-controlled medical system. The essay discusses benefits such as access to a wider variety of drugs and potential cost savings through market forces and economies of scale. However, it also highlights the risks associated with this practice, including the potential for substandard drugs and exploitation by sellers. The essay concludes that while there are advantages to allowing patients to purchase drugs outside the price-controlled system, the potential risks of exploitation and substandard drugs remain significant concerns. The author references several academic sources to support the arguments presented.

Running head: HEALTHCARE 1
Evolution of managed healthcare and the role of government
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Evolution of managed healthcare and the role of government
The United States government spends about 18% of the country’s revenue on healthcare.
This is so much as compared to any other country in the world. In contrast, the cost of healthcare
in the United States have seen a steady increase in the past few years (Lorenzoni, Belloni, &
Sassi, 2014). There are several explanations that have been set up to explain this glaring contrast.
Among them is the premise that medicine costs are not expensive but doctors are paid more. The
increased costs of health care has made people to seek alternative solutions such us using self-
prescription drugs purchased over the counter. Some patients end up purchasing drugs out of the
price controlled medical system. This paper focuses on the advantages and disadvantages of
permitting patients to buy drugs out of the price controlled medical system.
Meier, (2016) explains the various advantages of permitting patients to purchase drugs
out of the price control. One of them is that it enables patients to access a wide variety of drugs
that may not be available within the price control system. These medicines may offer
comparative advantage in terms of costs and quality due to the generic nature of drugs. Another
advantage of permitting patients to purchase drugs out of the price controlled medical system is
that it is possible to benefit from low prices due to market forces. In addition, economies of scale
may also benefit people who buy drugs in large amounts especially people suffering from a
chronic illness.
In addition, allowing patients to buy medicines out of the price controlled medical system
allows patients to explore other types of medicines from the environment. This fulfils the whole
duty of man as commanded in the bible in the book of Genesis chapter 1 verses 26-29 where God
gives dominion to man over every living creature and every plant in the universe. According to
Klein, Blomberg, & Hubbard (2017), faith also provides solace to the pacification of mental

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health and psychosocial illnesses such as stress as the Lord promises in the book of Jeremiah
30:17, “For I will restore health to you and heal you of your wounds.”
According to Schoonveld, (2016), one major disadvantage however is that there is a
higher potential risk associated with the medicines that are not in the price control medical
system. The potential risks may range from sale of drugs that are not up to standard to possible
exploitation by the drug sellers as the drugs can’t be found in the health facilities. A
disadvantage may also arise in the effectiveness of such medications as the effectiveness of these
drugs is not a sure guarantee. The accessibility of these drugs may also be a challenge as sellers
do not have an incentive of selling these drugs due to low demand. Low demand may cause these
drugs to stay for long in the chemists which may lead to sale of expired drugs to consumers.
In conclusion, it is clear that the advantages of allowing patients to purchase drugs out of
price controlled medical system is that they can benefit from market forces and comparative
advantage. The major disadvantage lies in the potential risks of exploitation by drug sellers and
distributors.

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References
Klein, W. W., Blomberg, C. L., & Hubbard Jr, R. L. (2017). Introduction to biblical
interpretation. Zondervan.
Lorenzoni, L., Belloni, A., & Sassi, F. (2014). Health-care expenditure and health policy in the
USA versus other high-spending OECD countries. The Lancet, 384(9937), 83-92.
Meier, K. J. (2016). The Politics of Sin: Drugs, Alcohol and Public Policy: Drugs, Alcohol and
Public Policy. Routledge.
Schoonveld, E. (2016). The price of global health: drug pricing strategies to balance patient
access and the funding of innovation. Routledge.