Pharmaceutical industry challenges Trump plan forcing companies to reveal drug prices in TV ads
Symbicort, an inhaler marketed to people whose lung disease makes them “huff and puff,” rolls off the manufacturing line at a price of $327 for a month’s supply. A familiar TV ad, in which a little girl compares her grandfather’s cough to the Big Bad Wolf from “The Three Little Pigs,” trumpets the drug’s benefits and advises about side effects but doesn’t mention the list price. That could change under the Trump administration’s proposed rules that would require companies to disclose the cost in legible print on any video ads. The pharmaceutical industry is fighting back, arguing that consumers should be able to find the price elsewhere and that few people end up paying the list price anyway.
In the case of Symbicort, some customers pay nothing under AstraZeneca’s “zero pay” program. Seniors on Medicare will shell out varying sums as they move through the year, depending on whether they have surpassed certain spending limits. Enrollees in suburban Maryland with a SilverScript Choice plan would pay $46 at a CVS pharmacy near the Beltway until they hit Medicare’s “doughnut hole” — when the have spent enough for their government subsidy to shrink and their out-of-pocket cost rises to $82, according to the Medicare Plan Finder portal. Seniors on the same plan in Seattle would pay $34 per month for Symbicort at a CVS near the Pike Place Fish Market for most of the year. Given those variables, disclosing list prices alone “would likely serve to confuse patients and potentially deter use of beneficial medicines that may be affordable once other factors, such as insurance coverage, are considered,” AstraZeneca said in a statement to The Washington Times.
The Trump administration says there’s still value in forcing companies to reveal list prices. People who have high-deductible plans can pay thousands of dollars in drug costs, at list price, before their insurance kicks in. Others pay a percentage of a drug’s cost, so the list price, while not their cost, is still indicative of what they will pay. “So [the list price] really matters, and as a result, we think disclosure of those list prices will create a downward pressure on the list prices of those drugs and impact Pharma behavior,” Health and Human Services Secretary Alex Azar told Bloomberg Television. The goal is to give consumers an “anchor price,” the same way car manufacturers give a suggested retail price. While few pay the exact amount, it creates a way to compare deals and shop around. If patients suddenly stop requesting a drug that costs, say, $11,000 after the TV rule takes effect, it probably won’t cost that much for long, said a senior administration official who was outlining how the plan might work in the real world.
https://www.washingtontimes.com/news/2018/oct/24/trump-tv-rule-revealing-drug-prices-hit-pharmaceut/