If the U.S. government is to intervene in the drug-pricing battle, it must understand the “economics forces that drive price increases, and the parties responsible for them,” according to a Health Affairs Blog post.
The article, written by Neeraj Sood, Tiffany Shih, Karen Van Nuys and Dana Goldman, was published Tuesday.
“Yet list prices rarely represent what manufacturers are paid for drugs, as they are routinely discounted and rebates paid to various parties in the distribution system,” the authors write.
Despite only a 2.8 percent rise in net prices in 2015, a sum which includes discounts and rebates, a network of “insurers, pharmacy benefit managers (PBMs), pharmacies and wholesalers,” according to the post, still obfuscates what a manufacturer is paid for a particular drug.
“Contracts among these players govern the exchange of goods (drugs) or services (such as logistics or claims administration) for various feeds, discounts, rebates and chargebacks,” the authors write.