Drugmakers Celebrate the New Year by Raising Prices on Hundreds of Drugs

Three dozen drugmakers are raising prices on more than 250 prescription drugs, according to an analysis by RX Savings Solutions. The average price increase will be around 6.3%, although some drugs will see prices increase by 10% or more.

By contrast, the inflation rate in the U.S. for the 12 months through November is 2.2%.

The analysis, first reported by Reuters and the Wall Street Journal, also showed that the number of drugs seeing price increases as well as the average rate of increase are lower than in 2017, as Big Pharma faces pressure from President Trump and consumer groups alike to keep drug prices lower.

Read Full Article: Fortune

Jim FarleyFrom the desk of Jim Farley: We were greeted in 2019 with the front-page headline “DRUGMAKERS INCREASE PRICES IN NEW YEAR”. Some increases were as high as 30%. An analyst reported the “magic number” seemed to be an increase of 6%. Increases occurred on both brand and generic drugs.

The increases affect “list prices” which are set by manufacturers but don’t consider rebates and discounts. Drug makers said they raise prices in conjunction with rebates they give to Pharmacy Benefit Manager (PBM) to be placed on their formularies.

Every PBM will tell you they exist to save customers money on drugs. Would you choose to save money on something by raising the price you pay in order to have the seller pay you a portion of that amount back (without interest) 9 months later? Are you even seeing rebates on your drug spend?

Leave a Reply