The price of prescription drugs has created much controversy in recent years. This article examines why the pharmaceutical industry is under such scrutiny despite the fact that expenditures for drug costs have remained steady, explores State and federal legislative response to this perceived problem, and posits the future regulatory landscape regarding prescription drug pricing.
Are prescription drug prices out-of-control? According to the Centers for Disease Control and Prevention’s National Center for Health Statistics, the percent of national health expenditures in 2013 for prescriptions drugs accounted for 9.3%, while personal medical expenses related to that percentage equates to $271.1 billion. Media outlets and politicians often grab headlines with only one of those numbers, but it is important to keep things in perspective and realize that overall, the national health expenditures for prescription drug costs have remained relatively the same since 1960, when compared to other health consumption expenditures.9 The largest expense can be attributed to hospital care, which accounts for 32.1% overall or $936.9 billion, by professional services (i.e., physician and clinical services, etc.) at 26.6% or $777.9 billion.10 Based on this data, why is the pharmaceutical industry such a target then?
Read Full Article in the June Issue of Life Science Compliance Update