Why do we pay outrageous prices for common drugs?
This question is on everyone’s mind and has spurred a flurry of bills and proposals to tackle the issue. The problem is multi-pronged with questionable negotiations, obscure reimbursement schemes, and controversial rebate deals poisoning a supply chain that financially rewards some players at the expense of patients.
For additional information on challenges and potential solutions, check out the nonpartisan organization, National Academy for State Health Policy.
Video Spotlight: Here’s Why Drug Prices Are So High
This post is based on the Washington Post article, Why Prescription Drug Prices Have Skyrocketed – and Why the Government Needs to Take Action, by R. Feldman, November 26, 2018; and the YouTube video, Here’s Why Drug Prices Are So High, by CNN Business, April 24, 2018. Image source: Fancy/Veer/Corbis/Getty Images.
1. According to the Washington Post article, what are some of the reasons for high drug prices?
Guidance: A few of the reasons include a system that favors more expensive drugs over cheaper ones; increased demand through Medicare prescription drug coverage; drug companies that artificially inflate discounts with higher prices; health plan structures that allow for some payments Continue reading