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Regulatory and Policy Impact

Regulatory and Policy Impact

Regulatory and Policy Impact

States propose different policies and regulations that affect the health of their members. The policies differ from one state to another based on the current health issues of people in the state. California is one of the states that has proposed a bill related to the health issues of people living in the state. The proposed bill is CA ACR105, which is titled the Prescription Drug Prices. The bill is to be presented to the legislature to be signed into law as a bill. The prices of prescription drugs in California are high, and the bill intends to lower the prices for all people living in California. The bill will benefit many patients in California, especially those who cannot afford the high price of some essential medications. Implementation of the bill will reduce the health burden of many patients in California.

The Pros and Cons of the Proposed Health Policy

The proposed health policy, in this case, is lowering the prices of the drugs prescribed. In the recent past, there has been an increase in the prices of essential drugs due to increased demand for drugs and increased medical conditions such as diabetes (Deb & Curfman, 2020). It is estimated that the prices of essential drugs have increased by 20 % annually since the year 2012 (Deb & Curfman, 2020). Drug companies have increased the number of patients to increase the prices of the drugs and make huge amounts of profit. The Drug industry benefits company managers and insurance companies instead of benefiting patients (Deb & Curfman, 2020). With the bill’s enactment, patients will benefit, but it will also have some disadvantages to the drug companies, the insurance companies, and some patients.

Lowering the prices of drugs will greatly benefit that community and the patients in the state of California. With low prices, people in California will be able to buy any drug they are prescribed to improve their quality of life (Shepherd, 2019). The quality of life exists when people of a state are healthy. Being able to afford drugs means that the people will live a healthy life since drugs for managing and treating their medical conditions will be accessible (Shepherd, 2019). The other benefit of reducing the prices of drugs is that people will adhere to their medication plans or prescribed drugs. Most non-adherence to medication occurs because people are not able to afford expensive prescribed drugs (Shepherd, 2019). When the prices are lowered, people will afford them, which will lead to drug adherence, which later improves the patient outcome and quality of care.

Lowering the prices of prescribed drugs also comes with some disadvantages. The healthcare system will be affected since it requires enough funds to run. Some of the funds used to run the health system and ensure quality care come from selling prescribed drugs (Shepherd, 2019). Reducing the price of drugs means reducing the funds used to finance the healthcare system. It is approximated that prescribed drugs raise over 17 billion US dollars for the federal states (Deb & Curfman, 2020). The state of California, therefore, may lose money when they reduce the cost of drugs. Another disadvantage is that the quality of the drugs may be reduced. Due to a lack of funds to produce the drugs, companies may opt to produce low-quality drugs that might flood the market and reduce healthcare quality (Shepherd, 2019). Therefore, the state of California has to identify strategies for dealing with the challenges that may arise when the bill is implemented, such as the source of funds.

Government’s Impact on the Cost of Health Care

The government plays a major role in ensuring that healthcare costs are low and affordable to all people in the country. The major impact of the government on the cost of healthcare is through funding and government health insurance programs. Through laws and Acts, the government has passed health insurance policies that fund the members of the public whenever they seek healthcare services. Through laws and Acts such as the Affordable Care Act, the government ensures that all people can afford health insurance and also funds vulnerable groups of people in the community through the various federal insurance policies (Shepherd, 2019). Programs such as Medicare and Medicaid ensure that the government insures people at high risk of having poor health.

The government also tries to ensure that the drugs prescribed are affordable by reducing the taxes on the prescribed drugs. Government insurance programs such as Medicaid also cover the costs of prescribed drugs in health facilities and major pharmacists. Funding the Affordable Care Act and the Medicaid programs ensures that people have access to expensive drugs, hence improving the quality of life and care (Vogler et al., 2017). The government also aims to reduce the out-of-pocket fee and the prices of prescribed drugs to improve the health status of all citizens. Taking up the role of funding innovations and companies to manufacture drugs also helps in reducing the prices of the drugs. Therefore, the government plays a big role in ensuring that health care is affordable to all, including the cost of prescribed drugs.

The Regulatory Authority That Will Enforce or Implement the Health Care Policy

Government leaders and health agencies will play a big role in the implementation of the policy. In this case, the governor and the senator will ensure that the lowered costs of the prescribed drugs are sold at the agreed prices to people in the state (State of California, 2020). The legislature will be required to sign the policy of reducing drug prices into action. Any healthcare facility or pharmacist that sells the prescribed drugs at high prices should face legal action. Government health agencies and organizations in the states, such as health and human services, should also ensure the prices of prescribed drugs are low (State of California, 2020). The agencies and organizations can implement this by producing generic drugs and selling them to patients at a low price or making inspections to ensure that drugs are sold to people at a low price (State of California, 2020). Health organizations and agencies such as the CDC will provide relevant data on the policy’s progress.

Differences between Federal, State, and Local Health Care Regulatory Responsibilities

The federal, state, and local governments have different regulatory responsibilities to play in lowering the cost of drugs prescribed. The federal government’s responsibility will be to sign into law executive orders that will require health organizations like the Health and Human Services (HHS) to lower the prices of drugs (State of California, 2020). The federal government should also mandate the HHS to find cheap but high-quality drugs for people. The state government will be required to collaborate with other states in ensuring that they come up with policies and strategies that help reduce the prices of the prescribed drugs (Vogler et al., 2017). Making the lowered prices of drugs transparent to all people will also be one of the responsibilities of the state government. The local government at the community level should make people aware of reduced drug prices and ensure retailers selling drugs to the people sell them at a low price. The local government can also come up with programs that help people to pay for the drugs.


Deb, C., & Curfman, G. (2020). Relentless prescription drug price increases. Jama323(9), 826-828.  doi:10.1001/jama.2020.0359

Shepherd, J. (2019). Pharmacy benefit managers, rebates, and drug prices: conflicts of interest in the market for prescription drugs. Yale L. & Pol’y Rev.38, 360.

State of California (2020). Governor Newsom Signs Legislation Advancing California’s Fight to Lower Prescription Drug Prices.

Vogler, S., Paris, V., Ferrario, A., Wirtz, V. J., de Joncheere, K., Schneider, P., … & Dedet, G. (2017). How can pricing and reimbursement policies improve affordable access to medicines? Lessons learned from European countries. Applied health economics and health policy15(3), 307-321.


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Regulatory and Policy Impact

Regulatory and Policy Impact

Regulatory and Policy Impact

Regulatory and Policy Impact

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