PhRMA doesn’t understand transparency very well

KEY TAKEAWAY: The pharma industry’s top trade group on Tuesday launched a new series of ads as part of its drug pricing campaign aimed at blaming cost increases on insurers and pharmacy benefit managers.  However, it’s trying to bail water from a sinking ship.

According to PhRMA “While biopharmaceutical companies set the list price for a brand medicine, more than one-third is rebated back to payers and the supply chain. Insurers negotiate large rebates, but do not share these discounts with patients who pay a deductible or coinsurance — a percentage of costs a patient is responsible for paying out of pocket — for their medicine. Ultimately, your insurer determines what you pay for your medicine out of pocket”.

But is that going to offset headlines like these:

According to Credit Suisse “US drug price rises contributed 100% of industry EPS growth in 2016”. Even though prescription drugs constitute only 11% of US health expenditures, according to the Centers for Disease Control and Prevention and Centers for Medicare and Medicaid Services,and US drug spending ranks in the bottom one-third of comparison lists with other developed nations, prices continue to increase rapidly here, with a year-over-year rise of almost 10% for drug list prices, according to a 2017 Credit Suisse report.

Here’s what PhRMA doesn’t understand:

1ne: People are angry at high drug costs and at our elected officials.

2wo: People know that PhRMA is the lobbying arm of the pharma industry and spends a lot of money to keep prices high.

3hree: People have ways of finding the truth online and pharma bears much of the blame for high drug prices.

The fact that pharma companies keep giving their CEO’s multi-million dollar packages while using the money from recent tax savings to reward shareholders doesn’t help.  PhRMA needs to take a reality pill because right now their propaganda is not being bought.

One thought on “PhRMA doesn’t understand transparency very well

  1. Would the prices have been as high if the PBM’s and Ins Co’s did not demand rebates? Aren’t we just shifting costs around? Pharma has maintained EPS and ROI while PBMS have taken a larger share. Pharma would not have raised prices as high as they are without PBM’s in the mix.

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