Have drug prices increased or declined over the past year? That is the burning question that has divided pharma makers, the healthcare industry, and the nation, in 2019.
In a press release, the White House said that overall prescription drug costs have declined over the past year—contrary to media reports. A recent Council of Economic Advisers (CEA) paper shows prescription drug prices have seen year-over-year declines in nine of the last 10 months, with a 1.1% drop in July. “In June 2019, the United States saw the largest single-year drop (2%)…in prescription drug prices since 1967,” the White House said.
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In the 8 years prior to President Donald Trump’s inauguration, prescription drug prices increased by an average of 3.6% per year, the White House said.
Other reports demonstrate that drug prices have increased, because they examine the list prices of brand name drugs, which have gone up, Jeremey Shafrin, PharmD, senior vice president and director of the Access Experience Team at Precision for Value, told FormularyWatch®. “However, when factoring in rebates/discounts and generics, there is data to indicate that costs have come down. For the patient or employer, however, which has seen rising premiums and challenges to afford healthcare, the point is probably moot.”