Hawaii J Med Public Health. 2016 Jan;75(1):25-30.

The Daniel K. Inouye College of Pharmacy Scripts: Prescription Drug Pricing.

Hawai'i journal of medicine & public health : a journal of Asia Pacific Medicine & Public Health

Wesley K Sumida, Ronald Taniguchi, Deborah Taira Juarez

PMID: 26870605 PMCID: PMC4733824

Abstract

Prescription drugs have reduced morbidity and mortality and improved the quality of life of millions of Americans. Yet, concerns over drug price increases loom. Drug spending has risen relatively slowly over the past decade because many of the most popular brand-name medicines lost patent protection. In the near future, there will be fewer low-cost generics coming into the market to offset the rising prices of brand-name drugs. Drug expenditures are influenced by both volume and price. This article focuses on how drug prices are set in the United States and current trends. Drug prices are determined through an extremely complicated set of interactions between pharmaceutical manufacturers, wholesalers, retailers, insurers, pharmacy benefit managers (PBMs), managed care organizations, hospitals, chain stores, and consumers. The process differs depending on the type of drug and place of delivery. Rising drug prices have come under increased scrutiny due to increased cost inflation and because many price increases come as a result of mergers and acquisitions of generic drug companies or changes in ownership of brand name drug manufacturers. Other countries have reigned in drug prices by negotiating with or regulating pharmaceutical manufacturers. The best long-term solution to rising drug prices is yet to be determined but the United States will continue to debate this issue and the discussions will get more heated if drug expenditures continue to rise at a rapid rate (ie, increasing 13% in 2014 from the previous year).

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Substances

• Prescription Drugs

MeSH terms

• Humans
• Prescription Drugs / economics
• United States

Publication Types

• Journal Article