Health

U.S. drug prices are rising three times faster than inflation

Tuesday, March 3, 2020 (HealthDay News)-Net cost of prescription during 10 years Drug In the United States, new research shows that inflation has risen more than three times faster.

The net cost of the drug is the price of the sticker minus the manufacturer’s discount.

Researchers at the University of Pittsburgh’s Drug Policy and Prescribing Center (CP3) conducted an analysis of trends in net drug costs for branded prescriptions in the United States.

“Previously, we were limited to list price surveys that didn’t take into account manufacturer discounts. List prices are very important, but not complete,” said research author Inmaculada Hernandez, an assistant professor at Pitt’s pharmacy. .. “This is the first time we have been able to consider discounts and report net price trends for most brand names. Drug In the United States

The team used revenue and usage data for over 600 branded drugs from 2007 to 2018. After adjusting for inflation, list prices surged 159% and net prices rose 60%. This is more than three times the inflation rate.

Net prices leveled off in 2015, but the authors pointed out that this does not reflect affordability for consumers.

“The net price is not always paid by the patient,” said Dr. Walid Gerad, an associate professor of medicine and health policy at Pitt and senior author of CP3. “Many of the discounts don’t go to patients.”

Most discounts are rebates paid to public and private insurance companies. Out-of-pocket and co-insurance are based on list prices rather than net prices, so the amount paid by consumers is largely unaffected by rebates.

In addition, the study found that Medicaid discounts were greater than other discounts. This may reflect regulation. Mandatory Medicaid rebates are based on rising prices against inflation, while discounts for other payers are based on negotiations.

“There has been a lot of debate over the past few years that net prices have been stable, which seems to be the case,” Gerad said in a college news release.

“But net price stabilization is many times faster than product inflation that hasn’t changed during this period, in addition to the significant rise over the last decade. Moreover, this net price is average and payers. There is considerable variability between the drugs, “he said.

This study was conducted on March 3rd Journal of American Medical Association..

–Kayla McKiski

MedicalNews
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References

Source: University of Pittsburgh, News Release, March 3, 2020



U.S. drug prices are rising three times faster than inflation

Source link U.S. drug prices are rising three times faster than inflation

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