FDAnews Drug Daily Bulletin
Pharmaceuticals / Commercial Operations

Bulk Purchases, Transparency, Antitrust Enforcement Would Reduce Drug Costs, State Group Says

Oct. 27, 2016

The National Academy for State Health Policy is proposing 10 measures to reduce drug spending, which include greater transparency on pricing and better enforcement of antitrust laws.

Public disclosures of price discounts and rebates could ensure that more payers expend similar amounts on products, the academy report says, suggesting that this could lead to fewer spending outliers.  The academy is an independent working group made up of state officials from legislatures, attorney general offices, Medicaid programs and insurance exchanges.

As drugmakers often justify exorbitant drug prices with the high cost of research and development, the working group is asking for disclosures on drug development costs, noting that this might be challenging due to the fact that budgets can be allocated across multiple therapeutic areas.

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