A new study published in Health Affairs suggesting increasing list prices is the main driver of rising drug spending fails to account for rebates and discounts negotiated by payers, PhRMA says in a new blog post.
The pharmaceutical lobbying group criticized the study, saying that it “dramatically overestimates the role of list price increases,” and that SSR Health analysts, who reportedly replicated the study using net prices, came to an opposite conclusion.
“In fact, SSR Health data show that average net prices for single-source brand medicines have been falling since the fourth quarter of 2017, and fell 5.1 percent as of the third quarter of 2018,” PhRMA states.
The study by University of Pittsburgh’s Inmaculada Hernandez et al. used First Databank pricing data and UPMC Health Plan pharmacy claims between 2008-16.
To read PhRMA’s full blog post, click here.
Click here to read the full research article on Health Affairs. (Paid subscription required)