Health Policy & Advocacy
Resources
Basic InformationMore InformationLatest News
Pandemic Has Left Nearly 43 Million Americans Without WorkPeople Are Avoiding the ER During COVID-19 Crisis at Their Peril: StudyAs Postponed Surgeries Resume, Can U.S. Hospitals Handle the Strain?Most Americans Still More Worried About COVID-19 Spread Than the EconomyBig Need for Blood Donations as Postponed Surgeries ResumeEmergency Transport Can Surprise Many With Big BillsOnly Half of Americans Say They'd Get a Coronavirus Vaccine: SurveyIf Prescribed Opioids for Pain, Ask Lots of Questions: FDAState Texting Bans Are Saving Teen Drivers' LivesMillions of Older Americans Can't Get Enough FoodLayoffs and Losses: COVID-19 Leaves U.S. Hospitals in Financial CrisisFDA Goes After Unproven COVID-19 Antibody TestsDuring Droughts, Many Poor Americans Will Lack Clean Tap Water: StudyDid the Movie 'Joker' Reinforce Prejudice Against Mentally Ill?AHA News: How to Get the Most Out of Health AppsCoronavirus Conspiracy Theories Abound, and They Could Cause Real HarmAHA News: Health Emergency? Don't Hesitate to Get HelpAn Expert's Guide to Fact-Checking Coronavirus Info OnlineRacial, Ethnic Gaps in Insurance Put Moms, Babies at Risk: StudyCelebrity Suicides Spawn 'Copycat' Tragedies, Study Shows
The Doctor Gap: In Areas of Greatest Need, Primary Care Is a Team Effort">
The Doctor Gap: In Areas of Greatest Need, Primary Care Is a Team Effort
The Doctor Gap: Where Are All the Mental Health Care Providers?New, Graphic Health Warnings Coming for U.S. Cigarette PacksWith New Boost From Medicare, 'Telemedicine' Steps Up to Fight CoronavirusThe Doctor Gap: In Rural America, It's All Hands on DeckThe Doctor Gap: A Training Program for Country-Doc WannabesDon't Believe All the 'Science' on CBD ProductsMany Car Crash Deaths Involve Alcohol Levels Below Legal Limit: StudyThe Doctor Gap: Does America Have a Physician Shortage?12 Weeks of Paid Maternity Leave Benefits Everyone: StudyVaping Videos Soaring on YouTubeU.S. Blood Donors Needed in Face of COVID-19 CrisisIt's Tough for Clinical Trial Participants to Learn ResultsBogus Coronavirus 'Meds' Targeted by FDAOnly 1 in 5 Have Fast Access to State-of-the-Art Stroke CareOne Key Way to Curb Coronavirus Spread: More Paid Sick LeaveU.S. Drug Prices Have Risen Three Times Faster Than InflationU.S. Announces More Travel Restrictions as First Coronavirus Death ReportedIt's Not Medical Outcomes That Drive Patients' Hospital ReviewsChicago's Short-Lived 'Soda Tax' Cut Consumption, Boosted Health Care FundsSocial Media Stokes Myths About VaccinesBrand-Name Rx Rise After Docs Get Drug Company Perks: StudyAs Prices Rise for Parkinson's, Alzheimer's Meds, Patients Go WithoutRoll Up Your Sleeve and Donate Blood for Cancer PatientsShotguns Often Play Tragic Role in Rural Teens' Suicides: StudyPrice Hikes Have Patients Turning to Craigslist for Insulin, Asthma InhalersConsumers Waste Twice as Much Food as Experts ThoughtStricter Clean Air Laws Could Save Thousands of Lives a Year: StudyCaregivers Give Short Shrift to Their Own HealthMedicare Could Save Billions If Allowed to Negotiate Insulin Prices
Links
Related Topics

Health Insurance
Healthcare

U.S. Drug Prices Have Risen Three Times Faster Than Inflation

HealthDay News
by -- Kayla McKiski
Updated: Mar 3rd 2020

new article illustration

TUESDAY, March 3, 2020 (HealthDay News) -- Over the course of a decade, the net cost of prescription drugs in the United States rose more than three times faster than the rate of inflation, a new study finds.

The net cost of a drug refers to the sticker price minus manufacturer discounts.

Researchers in the University of Pittsburgh's Center for Pharmaceutical Policy and Prescribing (CP3) conducted the analysis on net drug cost trends for brand-name prescriptions in the United States.

"Previously, we were limited to studying list prices, which do not account for manufacturer discounts. List prices are very important, but they are not the full story," said study author Inmaculada Hernandez, an assistant professor of pharmacy at Pitt. "This is the first time we've been able to account for discounts and report trends in net prices for most brand name drugs in the U.S."

The team used revenue and usage data for over 600 brand-name drugs from 2007 to 2018. When adjusted for inflation, list prices skyrocketed 159%, while net prices increased by 60% -- more than three times the rate of inflation.

Although net prices leveled off in 2015, the authors pointed out that this isn't a reflection of affordability for consumers.

"Net prices are not necessarily what patients pay," said senior author Dr. Walid Gellad, an associate professor of medicine and health policy at Pitt and director of the CP3. "A lot of the discount is not going to the patient."

Most discounts are rebates paid to public and private insurers. The amount paid by consumers is largely unaffected by rebates, as copays and coinsurance are based on list price, not net price.

Additionally, the study revealed that discounts are larger for Medicaid than others, which may be a reflection of regulation. Mandatory Medicaid rebates are based on price increase over inflation, whereas other payer discounts are negotiation-based.

"We're seeing a lot of discussion that net prices have stabilized over the last few years, and that does appear to be the case," Gellad said in a university news release.

"But the stabilization of net price comes on top of large increases over the last decade, many times faster than inflation, for products that have not changed over this time period. In addition, this net price is an average, with substantial variability across payers and drugs," he noted.

The study was published March 3 in the Journal of the American Medical Association.

More information

The American Medical Association has more on prescription drug prices.




328 W. Claiborne St.
P.O. Box 964
Monroeville,
Alabama 36460
Tel: (251)575-4203
Fax:(251)575-9459


powered by centersite dot net