Drug Pricing and Affordability of Medications

Saturday, February 18, 2017: 3:00 PM-4:30 PM
Room 210 (Hynes Convention Center)
Kevin Colgan, The University of Chicago Medicine, Chicago, IL
Impact of drug shortages and pricing on the health of Americans

Author: Kevin J Colgan

High cost drugs can cause financial toxicity for patients and their families. Federal government policies, the health insurance industry and PhRMA are mutually responsible for this problem. The problem is complex and includes under-insurance due to the preponderance of low premium, high deductible plans; higher drug pricing in the US versus other developed countries; restrictions on negotiating Medicare drug prices; non-transparency of the pricing system; pharmacy benefit manager consolidation and inherent conflict of interest which reduces competition; and not-true orphan drugs delaying market introduction of lower cost generics, to mention a few. Resolving this problem will require a public-private partnership with federal and state regulations that assure price competition and transparency and the private sector developing a sound set of principles to evaluate the true value of pharmaceuticals. This presentation will frame the drug pricing problem and explore potential solutions.