Main topic: The exorbitant price hikes of the top 25 costliest drugs for Medicare Part D plans.
Key points:
1. The price hikes of these drugs have more than tripled their list prices since entering the market.
2. The price increases far outstripped the rate of inflation, ranging from 20 percent to 739 percent.
3. Only one drug had price increases below the rate of inflation, while the average lifetime price increase for the top 25 drugs was 226 percent.
Main Topic: Price gouging of cancer drugs during the drug shortage
Key Points:
1. Smaller hospitals and cancer centers are facing price hikes of vital cancer drugs, with suppliers charging five to ten times more for medications.
2. Gray market vendors exploit drug shortages by buying medications at inflated prices and selling them to hospitals or clinics.
3. The increased costs pose a significant risk to cancer patients, especially those treated at smaller facilities with limited negotiating power and lower income levels.
The Biden administration is expected to announce the first 10 prescription drugs selected for Medicare price negotiations, marking a major step towards lowering drug prices through direct negotiations with pharmaceutical manufacturers.
The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.
Four pharmaceutical companies, including Merck, AstraZeneca, Bristol Myers Squibb, and Boehringer Ingelheim, have agreed to negotiate Medicare drug prices, albeit reluctantly, after suing the US government over the new requirement.
The Inflation Reduction Act indirectly aims to address market entry impediments by selecting certain biologics for price negotiation, encouraging competition and potential cost savings in the prescription drug market.
Medicare Part A and B premiums for 2024 are set to increase by 6 percent, with the monthly cost rising from $164.90 to $174.70, and the annual deductible for Medicare Part B beneficiaries increasing from $226 to $240, mainly due to projected increases in healthcare spending and the remedy for the 340B-acquired drug payment policy.
