Drug prices have been soaring for years, and it is time for the pharmaceutical industry to be held accountable for the inflated pricing and take action to make drugs more affordable, according to an op-ed written by Rick Pollack, president and CEO of the American Hospital Association, and Jo Ann Jenkins, CEO of AARP, in The Hill.
The Senate Homeland Security and Governmental Affairs Committee recently released a review that revealed the prices for the 20 most prescribed brand name drugs for seniors have risen at a pace nearly 10 times the rate of inflation over the past five years, though the op-ed's authors say that this is not surprising news. Instead, it is simply a statistic that illuminates one of the most profound problems in healthcare, according to Mr. Pollack and Ms. Jenkins.
The op-ed's authors argue nine out of 10 top pharmaceutical companies spend more on advertising and marketing than new drugs and should instead focus those resources on passing value along to customers, who are crippled by the skyrocketing prescription costs. As other healthcare industry players seek ways to lower the cost of care, the authors say big pharma should do the same.
"Hospitals will continue to do their part to control costs by streamlining patients' care, utilizing new technology and time-tested home visits to prevent unnecessary admissions and readmissions, forming accountable care organizations and embracing new reimbursement models," Mr. Pollack and Ms. Jenkins write. "Big Pharma could join this effort by working towards real solutions like removing barriers to competition and bringing more biosimilars and generics to the market sooner."