This is one of Keith’s pet peeves.
So, why do drug prices keep going up? The Common Wealth Fund listed 10 major problems:
- High launch prices and high annual increases for patented brand-name drugs.
- Brand-name drugs, with Orphan Drug Act market exclusivities, are introduced with high launch prices and experience high annual price increases.
- Some manufacturers create, or take advantage of, natural monopolies for drugs that enable them to significantly increase prices.
- The lack of robust competition among manufacturers of generic drugs results in less price competition and higher prices.
- The lack of price competition among biologics and biosimilars results in higher prices.
- Anticompetitive behavior by some manufacturers undermines competition, resulting in higher prices.
- Some manufacturers use current patent-protection policies for brand-name drugs to extend monopoly pricing.
- Patients, providers, and payers lack information about the comparative effectiveness of drugs at the point in time when critical health care decisions are made.
- The pharmaceutical distribution system does not make essential pricing information available to patients, providers, and payers at the point of care—information that patients and their providers need when deciding on the best course of treatment.
- Federal law imposes limitations on state authority to negotiate prices for Medicaid and implement other price-related measures to reduce high drug prices.