Congressional Panels to Investigate Recent Pharma Price Increases

[This article posted on November 19, 2009. It is posted within the following categories: Corporate, Pharma & Devices, via Michael Douglas, MD, MBA.]

Pharma has no comment on it. Congressional Democrats are wasing no time in investigating it. The concern over Pharma’s recent move to inflate drug prices on prescription branded agents is drawing scrutiny from the powerful House Ways & Means Cmte. As much as a 9 percent increase for the most widely prescribed medications today has apparently been implemented. The Dept. of Health & Human Svcs. has also been asked to investigate. Against the backdrop of strident efforts to reform what are seen as excessive cost drivers in the healthcare marketplace, the price increases set by Pharma represent an easy target by lawmakers.

Alleging the gamut of rationale to include everything from pre-emptive revenue enhancement ahead of reform^[1] to outright price gouging, lawmakers have also asked the General Accounting Office to come up with a proposal to continually monitor Pharma for such increases for the benefit of Congress. If Democrats’ concerns pan out, it would question Pharma’s motives, especially in light of the possible benefits to the industry as the result of reform. | LINK

Drugmakers have recently backed Democrats’ plan to overhaul the U.S. healthcare system, making a deal with some senators and the White House to provide around $80 billion in savings and rebates over 10 years. Some lawmakers are concerned price increases could be method to recoup expected loss of profit as the result of final reform bill. [↩]