U.S. Unveils Price Limits for 10 Costly or Common Medications

[Fermion]

Which illegal games did you link that drug manufacturers are playing to keep their monopolies on branded drugs? I understand that there are legal "games" like doing additional studies on population subsets and different forms of dosing and administration which can extend the length of a non generic drug, but these are legal and not really any different from a auto manufacturer playing games to get EV subsidies when their vehicles do not really qualify as the law intended. Legal, but maybe not as ethical as one would like.

 

[Gumby]

Which illegal games did you link that drug manufacturers are playing to keep their monopolies on branded drugs? I understand that there are legal "games" like doing additional studies on population subsets and different forms of dosing and administration which can extend the length of a non generic drug, but these are legal and not really any different from a auto manufacturer playing games to get EV subsidies when their vehicles do not really qualify as the law intended. Legal, but maybe not as ethical as one would like.

"Product hopping" is a big one -- https://www.ftc.gov/system/files/ftc_gov/pdf/p223900reportpharmaceuticalproducthoppingoct2022.pdf

As is the "pay for delay" mentioned earlier.

 

[Fermion]

Is the product hopping technique actually illegal? Isn't it similar to what Apple might do to encourage people to abandon their perfectly good Iphone25 and upgrade to a Iphone26?

 

[momoney]

Is the product hopping technique actually illegal? Isn't it similar to what Apple might do to encourage people to abandon their perfectly good Iphone25 and upgrade to a Iphone26?

You don't need the iPhone to survive and you have other phone options including used models.

 

[MichaelB]

Is the product hopping technique actually illegal? Isn't it similar to what Apple might do to encourage people to abandon their perfectly good Iphone25 and upgrade to a Iphone26?

The pharma company is making a change to their drug in order to extend the patent beyond the allocated time. This happened with a med my mum was taking. Her physician was very upset and told me the change was bogus and the only thing it accomplished was to delay the introduction of a generic by 2-3 years. In the meantime, the drug enjoyed a monopoly and the price was now artificially high.

In the Apple case, the user can keep the old phone, upgrade to the new phone, or buy a phone from a different manufacturer.

 

[Gumby]

You don't need the iPhone to survive and you have other phone options including used models.

And nobody makes generic iPhones.

Is the product hopping technique actually illegal? .....

Yes, a "hard switch" product hop - e.g. introducing a new dosage and terminating the old -- violates the Sherman Antitrust Act. State of New York v. Actavis, No. 14-4624 (2d Cir. 2015)

 

[MichaelB]

I would like to see some of these price controls extended to other areas also. Why are electric vehicles so expensive? Why are houses so expensive? We could do a lot to lower prices for everyone.

This is not price control. It’s a price agreement between the insurer (Medicare) and 10 pharmaceuticals. It doesn’t affect the price other insurers and PBMs negotiate.

Private insurers and PBMs have always done this.

 

[Texas Proud]

From an older article.... the way the drug industry is fixed is why the prices go so high.... no way they cannot make money at $25 per...


Insulin is seven to 10 times more expensive in the U.S. compared with other countries around the world. The same vial of insulin that cost $21 in the U.S. in 1996 now costs upward of $250. But it takes only an estimated $2 to $4 to produce a vial of insulin

 

[brett]

I believe that a more realistic price comparison might be the prices between various countries, regions vs before and after in country pricing.

For years I worked in an industry where we were constantly battling the 'grey market'. Importers bring product purchased at a much lower wholesale price into the country to undercut authorized in country re-sellers.

Product pricing is often based on what the country market will bear and as such there can be huge discrepancies in price between countries.

Manufacturers like to point to different costs of doing business however in my experience much of that is just nonsense...mumbo jumbo. Consumer products were the first to fall.

Fortunately the world has become much smaller and many manufacturers can no longer get away with this. In the US, drugs appear to be the exception to this.

Some people have apparently been able to cut their drug costs substantially simply by sourcing identical like for like product in other countries. Whether it be a short drive, a mail order, or vacationing/travelling to very specific areas where multiple months of supply can be purchased at a significantly reduced retail price.

 

[NatureBoy]

This is just the first installment. Many more to come in future years. From the White House press release:

"More drugs will be selected each year as part of Medicare’s drug price negotiation program. Medicare will select up to 15 additional drugs covered under Part D for negotiation in 2025, up to an additional 15 Part B and D drugs in 2026, and up to 20 drugs every year after that."

FACT SHEET: Biden-Harris Administration Announces New, Lower Prices for First Ten Drugs Selected for Medicare Price Negotiation to Lower Costs for Millions of Americans | The White House