Pharmaceutical Research and Manufacturers of America Executive Vice President for Policy, Research and Membership Lori Reilly testified Tuesday at a Senate Committee on Health, Education Labor and Pensions hearing about drug delivery systems and drug pricing.
PhRMA provided excerpts from Reilly’s testimony:
“List Prices for Medicines Do Not Reflect Substantial Rebates and Discounts and Provide an Increasingly Inaccurate Picture of Prescription Drug Costs
For certain medicines used to treat chronic conditions like asthma, high cholesterol, hepatitis C, and diabetes, these discounts and rebates can reduce list prices by as much as 30% to 70%.
According to PBMs and industry analysts, list prices for brand medicines have grown by an estimated 9% to 12% annually since 2015, while net prices (which take discounts and rebates into account) have grown by just 2.5% to 3.5%.
Claims from PBMs, payers, and others about the skyrocketing prices of medicines almost always focus solely on list prices, which are not reflective of actual spending trends.”