2. (Fortune, 2002, p. 16).

3.  Competition  Barriers to Entry  Regulation

4. Human Health = Variable of Health (Medical Care + Medications)

5.  Costs associated with  Research and Discovery  Manufacturing  Marketing

7. Degrees of Pricing 1.Charging consumers the maximum price Example: Providing a new drug that individuals desire like an AIDS medication at an unreasonable rate. 2. Charging different price depending on the quantity consumed Example: Wal-Mart purchasing a large quantity of drug X and passing on the savings to consumers compared to the local pharmacy purchasing small quantities and not receiving a savings. 3. Charging different prices for different groups of people Example: Markets, or groups of buyers with a more inelastic demand will pay higher prices.

8.  Copayments  Generic Substitutes  Drug Formularies

9. Ask doctors for 90 day supply instead of 30 days If low income- see if hospitals and pharmacies will waive co- pays Charity care Pharmacy assistance programs Extra help Program

10.  Provide Pharmacies incentives for dispensing generic drugs  Have insurances mail coupons to consumers to waive their co-payment if they opt for generic instead of brand name  Have physicians distribute samples of generic drug samples  Vouchers for free prescriptions to try generic products

11. Formulary Committees developing a list of approved drugs for:  Clinical Effectiveness  Safety  Cost

12.  Medicine Equity and Drug Safety Act  Medicare Prescription Drug Improvement and Modernization Act  Reimportation  Splitting pills  Generic substitutes

13.  Enforce already existing legislation  Enact new legislation  Price Regulation

14.  Structure and Regulation  Drug Prices  Monopoly  Price Discrimination  Cost Containment  Drug Formularies  Solutions and Implementation

15. DiMasi, J., Hansen, R., & Grabowski, H. (2003). The price of innovation: new estimates of drug development cost. Journal of Health Economics, 10( 1),107-142. Retrieved from EBSCOhost. Fortune. (2002). Largest U.S. firms and Largest Pharmaceutical firms ranked by market value. Retrieved from http://money.cnn.com/search/index.html?sortBy=date&primaryType=mixed&source=fort&query=larges http://money.cnn.com/search/index.html?sortBy=date&primaryType=mixed&source=fort&query=larges Getzen, T. E., & Allen, B. H. (2007). Health care economics. Hoboken, NJ: John Wiley & Sons. Hansen, R. (1996). Cost and benefit analysis in pharmaceutical promotion and untilization decisions. Journal of Health Economics, 13(1), 322-336. Retrieved from EBSCOhost. Kumar,S. (2010). Drug Prices-USA Perspective. Retrieved from http://www pharmainfo.nethttp://www Levit, K., Smith, C., Cowan, C., Lazenby, H., & Martin, A. (2002). Inflation spurs health spending in 2000. Health Affairs, 21(1), 172-182. Retrieved from EBSCOhost. Mather, B. (1999). Incorporating clinical outcomes and economic consequences into drug formulary decisions: a practical approach. American Journal of Managed Care. Retrieved from EBSCOhost.

16. Ma, J. (n.d.). Lowering Prescription Drug Prices in the United States: Are Reimportation and Internet Pharmacies the Answer? Retrieved from http://www- bcf.usc.edu/~idjlaw/PDF/15-2/15- 2%20Ma.pdfhttp://www- bcf.usc.edu/~idjlaw/PDF/15-2/15- 2%20Ma.pdf Watson, T. (August 8, 2003). Strategies for Maximizing Generic Opportunities in Payer Populations. Retrieved from http://findarticles.com/p/articles/mi_m0ON KV/is_9_4/ai_106566970