Drug Wholesale Prices Impact Payer Spending, Out-of-pocket Costs

January 4, 2021

Increases in drug wholesale list prices have a trickle-down effect that negatively impacts patient financial responsibility, such as out-of-pocket costs, and payer spending, according to a study published in JAMA Network Open.

In recent years, the pharmaceutical industry has been scrutinized for increasing medication prices in a way that outpaces inflation. Pharmaceutical manufacturers have argued that the increase in prices are a direct result of increased rebates, not due to a rise in costs paid by patients or payers. “As cost-related drug nonadherence is already widespread, rising drug prices raise concerns that patients will be unable to afford their prescriptions, leading to negative health outcomes,” the report authors wrote. Read more here.

(Source: Hannah Nelson; Health Payer Intelligence; 1/4/21)

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