Pharmaceutical Price Recap

No, this isn’t a discourse on recreational drugs.  Again, Benefits Pro offers some charming comments on drug prices in 2018.

  • In the first half of the year, there were 96 price increases for every one price decrease. This includes price raises on mature products on which there was  no new R&D spending. The Epi Pen and insulin are obvious examples.
  • When Trump made his statement at mid year that pharma companies were going to reduce prices on drugs, the result was an almost immediate increase in price on 356 drugs.(1)

The advice to insurance agents and brokers — and patients, of course — is to assume these increases will continue unabated in 2019.(1)

Of course, this is just for the US. In other countries, in which drug companies face free market competition, drug prices are much lower than in the US. In the US, where drug companies are top donors to Congressional incumbents, we don’t have a free market — Congress doesn’t allow it.


Sources:

  1. https://www.benefitspro.com/2019/01/07/pharma-benefits-preparing-for-2019-and-beyond/?kw=Pharma%20benefits:%20Preparing%20for%202019%20and%20beyond&et=editorial&bu=BenefitsPRO&cn=20190108&src=EMC-Email&pt=BrokerInnovationLabNotes&slreturn=20190008111653

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.