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3 reasons why medications are so expensive in the US - Kiah Williams

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TEDEd Animation

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A century after its discovery, insulin remain essential in treating diabetes, and has a relatively low production cost, with a vial generally costing less than $6 to make. But those in the US pay on average 10 times more than those in other countries— leading some patients to take less than prescribed. Kiah Williams takes a look at the US supply chain to explore why medications are so expensive.

Additional Resources for you to Explore

The cost of prescription medicine is an area of big public concern in the US. 8 in 10 adults say the cost of prescription drugs is unreasonable, and 1 in 4 say that it is difficult to afford the cost of their prescriptions. Read more about what Americans think about drugs and their prices here.

For patients whose costs are too high, patient assistance programs- usually sponsored by the pharmaceutical companies making each drug- can provide financial assistance for those who don't have insurance or are underinsured. Taking generic drugs can also be an option to reduce costs. Generics are only available after a brand-name drug's patent and market exclusivity expire. They have the same active ingredient but can be much lower in cost (sometimes 85% less) because they introduce price competition.

Another resource for patients in need are prescription drug donation and reuse programs, usually called drug repository programs. Places like hospitals, pharmacies, and long-term care facilities have billions of dollars of extra, unused medicine every year that goes to waste. SIRUM is a nonprofit that helps organizations and even individuals donate their unused medicine to repository programs, and has become the nation's largest redistributor of surplus medicine.

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TED-Ed Animations feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed Animation? Nominate yourself here »

Meet The Creators

  • Educator Kiah Williams
  • Director Serin İnan, Tolga Yıldız, Kozmonot Animation Studio
  • Narrator Christina Greer
  • Storyboard Artist Metin Dilek
  • Animator İrem Usta
  • Art Director Tolga Yıldız
  • Composer Tolga Yıldız
  • Sound Designer Tolga Yıldız
  • Director of Production Gerta Xhelo
  • Produced by Sazia Afrin
  • Editorial Director Alex Rosenthal
  • Editorial Producer Cella Wright
  • Script Editor Max G. Levy
  • Fact-Checker Charles Wallace
  • Expert Consultant Karen Van Nuys
  • Special Thanks Jen Chin, Adam Kircher, George Wang

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