There’s literally no limit to drug prices
When a new prescription drug hits the market, the drug makers only have a decade to sell it before other companies can make generics.
This system incentivizes drug makers to keep discovering incredible new medicines. But because they don’t have much time to make a profit, they set prices high, advertise directly to patients to build demand, and hold on to their monopoly as long as possible.
To bring down costs, we need to keep the innovation but stop the price gauging.
Here’s how to fix it.
There’s a lot of low hanging fruit. We just need some reasonable limits and common-sense rules.
No more delays
Drug makers shouldn’t be able to pay other companies to delay making generics. We also need a law that lets the FDA set fixed, public dates for when medicines can become generic.
Set threshold prices
An independent third party should look at real-world drug performance and set a maximum price for high-cost drugs. If a pharmaceutical company prices above that threshold, they immediately lose exclusivity and competitors can start making generics.
Make direct-to-consumer ads less profitable
The money drug makers spend on ads should come out of their threshold price.
Prescription drug prices are sky-high because that’s how the system is set up. So we need to change the rules.
Drug prices should be tied to real-world drug performance and generics need to be more available and accessible.
More info.
We have a lot more charts, graphs, data and personal stories to share.
If you’d like to hear Paul Markovich speak through these issues, listen to our podcast.
This problem isn’t just on our minds. To get more context, read these articles.