CBO report finds claim that drug prices increased "unlikely"

The very latest official CBO report now states unequivocally: It's "unlikely" drug net prices have increased, and they declined in Medicare and Medicaid.


This confirms IQVIA and other research on drug spending that shows more people have gained access to therapies but overall per capita Rx spending has "held steady or declined" for years.


With arrival of novel therapies, average prices for branded drugs have risen - but the substantial costs of these innovations are offset as formerly protected brands have been made generic.


#factcheck #drugpricing #drugpolicy


Key takeaways from the CBO:


"Nationwide per capita spending on prescription drugs has generally held steady or declined since the mid-2000s—other than the increase from 2013 to 2015—whereas use of prescription drugs has most likely increased over that period. "
"Further, a recent industry analysis shows that reductions in spending resulting from losses of exclusivity and generic pricing reductions nearly offset the growth in spending resulting from the entry of new drugs and price growth among other brand-name drugs"
"The average net price of a prescription—that is, the price of a prescription after subtracting the discounts and rebates that manufacturers provide to private insurers and federal programs—fell from $57 in 2009 to $50 in 2018 in the Medicare Part D program and from $63 to $48 in the Medicaid program."

https://www.cbo.gov/system/files/2022-01/57050-Rx-Spending.pdf



 

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