Public trusts drug companies but…

KEY TAKEAWAY: The public sees profits made by pharmaceutical companies as a major factor contributing to the price of prescription drugs. Majorities of the public trust pharmaceutical companies (either “a lot” or “somewhat”) to be good stewards in terms of developing new effective drugs (71 percent), and offering reliable information to consumers about drug safety and side effects (65 percent) as well as drug efficacy (61 percent).

Continue reading

An Executive order on drug prices is unconstitutional

KEY TAKEAWAY: Trump’s threat to issue an executive order on drug pricing, if issued, will be overturned as “unconstitutional”. There are no quick fixes to rein on excessive healthcare costs. They can only be addressed through a thorough bipartisan review of the way our healthcare system function.

Continue reading

Drug prices rising because of pressure from shareholders to deliver higher profits

KEY TAKEAWAY: So far in 2019, more than 3,400 drugs have boosted their prices, a 17% increase compared with the roughly 2,900 drug price increases at the same time in 2018, according to a new analysis by Rx Saving Solutions, a consultant to health plans and employers. The average price hike for those 3,400 drugs stands at 10.5% or about 5 times the rate of inflation, the study found.

Continue reading

Why pharma companies continue to feel the heat over pricing

  • Pharma continues to be portrayed as the villain in pricing but there are other villains who are escaping scrutiny.
  • The 5 largest conglomerates combining health insurance and pharmacy benefits are on track this year to be bigger than the 5 preeminent tech companies.
  • Half of people in fair to poor health are uninsured or struggle with affordability.
  • Annual family premiums for employer-sponsored health insurance rose five percent to an average $19,616 this year, extending a seven-year run of moderate increases.
Continue reading

Straight talk on drug pricing

  • While there is no excuse for the price increases on some drugs, like insulin other price increases are not aimed at consumers. They are aimed at PBM’s and insurers who are seeing their profits increase at a rapid rate.
  • Americans are among the most unhealthy in the world.
  • Millennials are so overweight, it has them on pace to be part of the most obese generation in history.
Continue reading

The over complicated process of drug pricing

  • Black-box negotiation processes” between drugmakers, insurers and the middlemen who haggle behind closed doors over how much money changes hands are hidden from patients.
  • Drug companies set the list price of drugs at insanely high levels solely to ensure the highest possible payment by insurers once all the haggling is complete.
  • There are markups along the supply chain by wholesalers and retailers, which want as big a piece of the profits.

Continue reading