Prescription drug costs has emerged as one of the largest health care concerns facing Americans and consequently has become a prevalent topic among presidential candidates, lawmakers, and industry stakeholders. Health insurers and drug makers fundamentally have opposing interests. Generally, insurers are focused on securing affordable and sustainable drug costs and drug makers are focused on optimizing profitability. Pharmacies also have an interest in ensuring that cost containment mechanisms, such as multi-tiered cost sharing which uses differential copayments to steer patients towards lower cost drugs, are not inappropriately employed to steer patients away from independently owned pharmacies toward larger Pharmacy Benefit Manager (PBM) owned pharmacies.
Mounting public frustration over the cost of drugs and looming policy changes have recently pushed the diverse stakeholders to engage in dialogue regarding solutions. Last month, the Department of Health and Human Services held a Pharmaceutical Forum which gathered a broad range of stakeholders to discuss the multi-faceted issues surrounding drug pricing and to identify opportunities to strike a balance between innovation and affordability. With both sides under pressure to develop a unified solution, Marilyn Tavenner, President and CEO of America’s Health Insurance Plans, and Steve Ubl, CEO of PhRMA, also met last week to discuss the rising cost of healthcare. Plans outlined by leading presidential candidates from both parties to reduce drug prices has increased the stakes for the industry and may continue to motivate insurers, drug makers, and other stakeholders to collaboration towards common goals.
Frier Levitt is well versed in drug pricing regulations and regularly helps pharmaceutical companies understand the contours of the law. Frier Levitt also performs due diligence and can help develop risk reduction strategies in the context of mergers and acquisitions involving pharmaceutical manufacturers. Contact us today to speak to an attorney.
