The growing call for greater transparency into drug prices
Why there is a growing call for greater transparency into drug prices in the US. When drugs are unaffordable, people are less likely to take their medications as prescribed.
Scrutiny on drug prices in the U.S. isn’t a new phenomenon. In the mid-2010s, high-profile increases on drugs like insulin made national news. In their Rx Price Watch Report from 2021, AARP found that retail-level prices for brand-name prescription drugs have consistently risen faster than general inflation. When drugs are unaffordable, people are less likely to take their medications as prescribed. According to the 2021 Medication Debt Survey by GoodRx, 18.7% of adults have delayed refilling a prescription and 16.4 have rationed medication because of drug costs.
These rising prices and their associated impacts have caught the attention of the media and lawmakers. For years – including during the last election – there have been calls for greater transparency into drug prices and even requests for limits on price increases. Despite the attention, the federal government has been unable to address these concerns.
As result, states are taking the reins and proposing and passing legislation to increase visibility into drug pricing, particularly related to market launches and price increases. These regulations are intended to help control pharmaceutical spend and better understand the rationale for price increases.
Find out more about GPI and State Drug Price Transparency here.
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