Aligning drug prices with the actual value provided to patients stimulates innovation that benefits patients and discourages innovation that does not. Legislation to increase drug price transparency, coupled with better information about value, can help payers and consumers spend their money wisely.
Other featured articles
A Spoonful of Sugar Makes the Medicine Go Down
CVS said its 9,500 pharmacies soon will be reimbursed by health insurers and other payers for the cost of the drugs plus a limited markup. That sounds like a simplification of drug pricing. But for vertically integrated CVS Health, revenue will shift from its pharmacy benefits division (CVS Caremark) to another (CVS Pharmacy). The move may also be an attempt to defuse growing political pressure to regulate the PBM industry.
Response to Sen. Cassidy’s Request for Information on Improving Americans’ Access to Gene Therapies
Schaeffer experts submitted a comment letter responding to a request for information from stakeholders about improving access to cell and gene therapies for ultra-rare diseases.
The Inflation Reduction Act’s Harms Go Beyond Drug Pricing — They’re Threatening Your Medicare
The IRA threatens to deliver disaster across the entire innovation, financing and distribution system for prescription drugs.
Why Does the Inflation Reduction Act Exclude Expensive Cancer Treatments in Price Negotiations?
The IRA negotiation provisions will have limited impact on cancer drug prices and will likely leave most patients with cancer exposed to high drug costs.
About this section
High pharmaceutical prices may garner headlines, but innovation must be appropriately incentivized to help solve healthcare’s intractable challenges. The Schaeffer Center connects industry, the academy and government to support the scientific and technological creativity that saves and improves lives — and spurs economic growth.