Sharply Rising Costs of Generics a Concern
Another aspect of the pricing paradigm shift is the switch to generics from branded products to save costs for care of Medicare and Medicaid patients. 80% of these latter groups are treated with much lowe- priced generics, but that may be changing as generic drug prices have been increasing. Ten percent of generic drugs have doubled more recently.
“For years, PBMs have used their formularies to encourage patients to choose generic drugs by including all generics in the bottom, or lowest out-of-pocket cost, formulary tier,” says Anna Goldbeck, a principal in the National Pharmacy Practice at Buck Consultants at Xerox. “Some PBMs are reacting to the rising cost of generics by creating new tiers that require members to pay higher copayments for ‘non-preferred’ generic drugs.”
Goldbeck says factors driving price increases for generics include:
- Consolidation among generic drug companies;
- Shortage of raw materials;
- Supply and demand; and
- Regulatory issues
The U.S. Department of Health and Human Services (HHS) is now investigating the sharp rise in generic pricing and associated increases to Medicaid over the past decade. They are guaging these rising generic drug prices by comparing price increases between 2005 and 2014 against the rate of inflation. Senators want generic manufacturers to pay a rebate to Medicaid when drug rates rise faster than the rate of inflation, a provision that’s currently in place for brand-name drugs.
Highlights of Upcoming Life Science Events in the Bay Area
- Bio2Device Group, Tuesday Morning, July 28, 2015; Topic: “A Medical Device Startup’s Obstacle Course – how Benvenue Medical is overcoming the challenges to bring new spine technology to the marketplace;” Speaker: Jeff Emery, Senior Director of R&D, Benvenue Medical :
- GGPF, Tuesday Evening, July 28, 2015; Topic: “Shape-Persistent and Self-Healing Polymers Enabled by Efficient Chemistries;” Speaker: Prof. Yan Xia, Dept. Of Chemistry, Stanford University
- HBA Supper Club, Tuesday Evening, July 28, 2015; Sheila Babnis, global business lead, innovation, Genentech will host an evening of networking and dinner.
- WIB-San Francisco Bay Area, Thursday Evening, July 30, 2015; Event: Social at Cantor Arts Center
You can download complete details for the above and other meetings through December by right clicking on Audreys Picks July 26, 2015. You can also download this week’s listing of jobs– JobsThatCrossedMyDeskThrough July 26, 2015—on the same site.
Note that I am not able to send my blog and lists directly to you as I did for over 10 years. You can access them by reading my weekly blog and downloading my lists at https://audreysnetwork.wordpress.com/