Impact on Consumers and Call for Accountability

In recent years, the issue of drug pricing by pharmaceutical companies, widely known as Big Pharma, has come under increasing scrutiny. The industry’s practices have led to outrage and calls for accountability as prices continue to rise at a rate surpassing inflation. This has sparked a pressing need for policy change to address the ongoing issue of price-gouging by Big Pharma.

Unsustainable Rise in Drug Prices

According to a statement from the Campaign for Sustainable Rx Pricing (CSRxP), Big Pharma hiked prices on 775 brand-name prescription drugs in the first two weeks of 2024 alone. An analysis from The Wall Street Journal and 46brooklyn Research further revealed that these increases were at a median of 4.5 percent, outpacing the rate of inflation. This follows a trend in which Big Pharma increases the price of hundreds of drugs at the start of each year. In fact, data from AnalySource found that 556 drugs experienced price increases in just the first week of 2024, with an average price increase of 3.92 percent.

Impact on Consumers

The continual increase in drug prices has a direct impact on consumers. Despite some positive changes, the copay at the pharmacy counter is still linked to the list price set by drug companies. This means that even as net prices have been decreasing for about six years, consumers are still feeling the pinch as copays remain high. Furthermore, list price increases can lead to higher copays at the pharmacy counter, while price cuts can result in the drug moving to a different tier of the insurer’s drug formulary, potentially leading to higher copays. This inconsistency and unpredictability further exacerbate the financial burden on consumers.

Call for Accountability

There is a growing demand for Big Pharma to be held accountable for these price hikes. U.S. Senator Bernie Sanders recently announced that the Senate Committee on Health, Education, Labor and Pensions will vote on subpoenas for two pharmaceutical CEOs to explain their companies’ disproportionate price charges in the U.S. compared to other countries. Sanders, along with consumer advocates, emphasized the need to hold pharmaceutical companies accountable for charging the American people the highest prices globally for the medicine they need.

Advocating for Policy Change

Organizations like Public Citizen have been actively advocating for ordinary people against big corporations like Big Pharma. They argue for the safety, effectiveness, and accessibility of prescription drugs and fight against corporate-rigged trade agreements that benefit Big Pharma at the expense of consumers. They also challenge the pharmaceutical industry’s rhetoric on innovation being used to justify exorbitant prices. In addition, they call for federal agencies to exercise ‘March In Rights’ on federally funded inventions to curb price gouging on taxpayer-funded medicines.

Finally, the current state of pharmaceutical pricing practices is untenable and calls for immediate and effective policy change. It is essential to hold Big Pharma accountable and push for measures that prioritize the healthcare needs and financial wellbeing of the public over the profit margins of pharmaceutical giants.

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