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.