Executive summary
Introduction
The ever-increasing cost of medication is a central concern in many forums. The media and the politicians have not failed to notice it either. Over 25 bills and numerous committees were set up to investigate the matter in 2017. While the issue of pricing has not attracted homogenous views, the efforts to increase competition on the market have drawn attention from across the divide. The FDA Reauthorization Act of 2017, which sailed through in both houses quite easily, identified quick route to allow some generics if it is determined by the secretary that the generic competition is not adequate (Mody and Blackwood, 2018). In the recent Health, Pensions, Labour and Education by the Senate hearing, members from both sides agreed with the need for competition and to thwart anti competition practices. They agreed that it was important to introduce generics and biosimilars to the market whenever it is determined appropriate to do so. They also mentioned that pay-for delay agreements should be abolished.
Approaches and results
i. Improving price transparency
While increasing transparency will not by itself fully reduce the price of prescription drugs, laws that enforce transparency practices are still required. Such laws will not only shame pharmaceutical dealers who increase prices without due consideration but also lay a basis for future reform in the sector. The bills before the houses in the various states differ in their utility and thoroughness. The states of...
One of the laws, in Nevada, requires that those who prices insulin must justify the price increase above a certain amount. The law demands that the insulin manufacturers and dealers report the input-output dynamics including the profits that they make every year (Benavides, 2018). The transparency on the part of the Pharmacy Benefit managers increases. PBMs are the ones that negotiate the rice of prescription drugs on behalf of large pharmaceuticals, insurance companies and employers. Donations from pharmaceutical companies and other players are made public, thanks to interventions by patient advocacy groups.
ii. Price negotiation
There is a need for federal agencies to get into negotiation for contracts on drugs that are covered. Such a move to would help the government to position itself in a better purchasing position for a purchase of such prescription drugs at lower prices. The benefits will be felt by the health sector and the consumer. Competition is encouraged in the paper and has the end goal of facilitating easier access to prescription drugs and medication n general. The prices of the most expensive drugs would then be tracked by the relevant agencies in government. The authorities would then seek to establish form the pharmaceutical companies why such drugs are so expensive, with a view to revising the pricing downwards. The government would then use a proviso in the law to make sure that prices do not…
