Market Access, Pharmaceutical Pricing, and Healthcare Costs

Abstract The pharmaceutical industry is highly regulated. Governments influence pharmaceutical pricing in many ways. Supply and demand affect price, but more importantly, both the consumers and the providers have minor roles in deciding the price of pharmaceutical products when a purchase happens. In fact, in many situations, it is not the consumer who pays directly for the products/services received, as they are often covered by health insurance. Costs can be estimated by cost of illness, budget impact analysis, and through full pharmacoeconomic evaluations. Both direct and indirect costs are estimated using appropriate methods. The accuracy of cost estimation depends on many factors, including the methods used.