Blog
About

1
views
0
recommends
+1 Recommend
0 collections
    0
    shares
      • Record: found
      • Abstract: not found
      • Article: not found

      Changes in List Prices, Net Prices, and Discounts for Branded Drugs in the US, 2007-2018

      1 , 2 , 1 , 2 , 2 , 3 , 4 , 5 , 2 , 3 , 5

      JAMA

      American Medical Association (AMA)

      Read this article at

      ScienceOpenPublisherPMC
      Bookmark
          There is no author summary for this article yet. Authors can add summaries to their articles on ScienceOpen to make them more accessible to a non-specialist audience.

          Abstract

          To what extent have manufacturer discounts offset increases in list prices of branded pharmaceutical products in the US? Using 2007-2018 net pricing data on branded pharmaceutical products in the US, list prices increased by 159% and net prices increased by 60%. Discounts increased from 40% in 2007 to 76% in 2018 in Medicaid and increased from 23% to 51% in other payers, offsetting 62% of increases in list prices for drugs. Although discounts partially offset list price increases of branded products from 2007 to 2018, there was still a substantial increase in net prices over this period. Most studies that have examined drug prices have focused on list prices, without accounting for manufacturer rebates and other discounts, which have substantially increased in the last decade. To describe changes in list prices, net prices, and discounts for branded pharmaceutical products for which US sales are reported by publicly traded companies, and to determine the extent to which list price increases were offset by increases in discounts. Retrospective descriptive study using 2007-2018 pricing data from the investment firm SSR Health for branded products available before January 2007 with US sales reported by publicly traded companies (n = 602 drugs). Net prices were estimated by compiling company-reported sales for each product and number of units sold in the US. Calendar year. Outcomes included list and net prices and discounts in Medicaid and other payers. List prices represent manufacturers’ price to wholesalers or direct purchasers but do not account for discounts. Net prices represent revenue per unit of the product after all manufacturer concessions are accounted for (including rebates, coupon cards, and any other discount). Means of outcomes were calculated each year for the overall sample and 6 therapeutic classes, weighting each product by utilization and adjusting for inflation. From 2007 to 2018, list prices increased by 159% (95% CI, 137%-181%), or 9.1% per year, while net prices increased by 60% (95% CI, 36%-84%), or 4.5% per year, with stable net prices between 2015 and 2018. Discounts increased from 40% to 76% in Medicaid and from 23% to 51% for other payers. Increases in discounts offset 62% of list price increases. There was large variability across classes. Multiple sclerosis treatments (n = 4) had the greatest increases in list (439%) and net (157%) prices. List prices of lipid-lowering agents (n = 11) increased by 278% and net prices by 95%. List prices of tumor necrosis factor inhibitors (n = 3) increased by 166% and net prices by 73%. List prices of insulins (n = 7) increased by 262%, and net prices by 51%. List prices of noninsulin antidiabetic agents (n = 10) increased by 165%, and net prices decreased by 1%. List price increases were lowest (59%) for antineoplastic agents (n = 44), but discounts only offset 41% of list price increases, leading to 35% increase in net prices. In this analysis of branded drugs in the US from 2007 to 2018, mean increases in list and net prices were substantial, although discounts offset an estimated 62% of list price increases with substantial variation across classes. This study describes changes in list prices, net prices, and discounts for branded pharmaceutical products in the US between 2007 and 2018 and estimates the extent to which list price increases were offset by increases in discounts.

          Related collections

          Most cited references 7

          • Record: found
          • Abstract: not found
          • Article: not found

          Assessment of Spending in Medicare Part D If Medication Prices From the Department of Veterans Affairs Were Used

            Bookmark
            • Record: found
            • Abstract: not found
            • Article: not found

            Assessment of Price Changes of Existing Tumor Necrosis Factor Inhibitors After the Market Entry of Competitors

              Bookmark
              • Record: found
              • Abstract: found
              • Article: found
              Is Open Access

              Trends in Prices of Popular Brand-Name Prescription Drugs in the United States

              Key Points Question What are the prices of top-selling brand-name prescription drugs in the United States, and how have these prices changed in recent years? Findings In this economic evaluation of 49 common top-selling brand-name drugs, 78% of the drugs that have been available since 2012 have seen an increase in insurer and out-of-pocket costs by more than 50%, and 44% have more than doubled in price. Meaning Prices of brand-name drugs in the United States are likely to continue to increase, which warrants greater price transparency.
                Bookmark

                Author and article information

                Journal
                JAMA
                JAMA
                American Medical Association (AMA)
                0098-7484
                March 03 2020
                March 03 2020
                : 323
                : 9
                : 854
                Affiliations
                [1 ]Department of Pharmacy and Therapeutics, University of Pittsburgh School of Pharmacy, Pittsburgh, Pennsylvania
                [2 ]Center for Pharmaceutical Policy and Prescribing, University of Pittsburgh, Pittsburgh, Pennsylvania
                [3 ]Division of General Internal Medicine, University of Pittsburgh School of Medicine, Pittsburgh, Pennsylvania
                [4 ]Insurance Services Division, UPMC Health Plan, Pittsburgh, Pennsylvania
                [5 ]VA Pittsburgh Healthcare System, Pittsburgh, Pennsylvania
                Article
                10.1001/jama.2020.1012
                7054846
                32125403
                © 2020

                Comments

                Comment on this article