AHIP Launches Campaign Tearing into Pharma for Drug Prices

AHIP, representing members of the US health insurance industry, is targeting pharma in its latest ad campaign. The campaign lays the blame for high prescription drug prices at pharma’s feet, highlighting anti-competitive practices, unjustified price hikes, and high profit margins for the largest pharmaceutical companies. However, pharma argues that payers themselves contribute to the problem.

According to Kelsey Waddill, “The tension between pharmaceutical companies and payers is not new. The amount that each contributes to the average American’s premium dollar has long been a source of contention. While AHIP has contended that pharmaceutical manufacturers reap 22 cents for every premium dollar, PhRMA—one of the nation’s leading pharmaceutical industry organizations—has argued that pharmaceutical costs for brand name drugs instead contribute less than 11 cents toward the premium dollar. In contrast, PhRMA found that insurer costs contribute nearly 20 cents.”

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(Source: Health Payer Intelligence, April 24^th, 2023)