4 Drug Pricing€¦ · increases 30 days in advance when drugs that cost ... •Requires...
Transcript of 4 Drug Pricing€¦ · increases 30 days in advance when drugs that cost ... •Requires...
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#NOH18@MikeAmeryDC@DerekBrandtDC@AANMember©2018 American Academy of Neurology
Support Drug Pricing Transparency
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New Issue Training Format• Issue background• Ask• Q&A with panel• Demonstration of ask• Practice on your own in small groups•Wrap up
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Drug Pricing Landscape
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Neurology Stake in Drug Pricing
Rare Diseases
Medicines in Development
Physician Population2%
11%
18%
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Prices On the Rise• $325 billion spent on prescription drugs in 2015$45.5 billion in out-of-pocket expenses for patients
• 50% of Americans use at least one prescription drug
• 25% of Americans report difficulty paying for prescriptions
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US Costs Higher Than Abroad
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#NOH18@MikeAmeryDC@DerekBrandtDC@AANMember©2018 American Academy of Neurology
Outlook – More Rx Spending• US spends more than any other country in both
total spending and spending per person
• Spending expected to grow to $610 billion by 2021, a 53% increase from 2015
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Drug Pricing Activity in 2017• 1,025 bills in state legislatures
• 19 bills in Congress
• Engagement from federal agencies
• Active pharmaceutical development
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#NOH18@MikeAmeryDC@DerekBrandtDC@AANMember©2018 American Academy of Neurology
Impact of High Drug Costs
Health System Spending
Physician/ Institution Attribution
Patient Access/Out of Pocket
Cost
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Impact on Patients• Nearly 1 in 4 Americans taking prescription drugs
report difficulty affording them• Prescription abandonment• Compliance difficulty, including rationing • Patients share of costs has increased Particularly disproportionate impact for those taking specialty drugs
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Impact on Physicians/Institutions• High cost drugs = high institutional risk• The cost of drugs prescribed is attributed to the
prescriberNarrow networksMIPS adjustments–2018: Cost is 10% of total score–2019+: Cost could be up to 30% of total score
• Unfavorable for risk-bearing APMs • Prior authorization/office burden
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FAIR Drug Pricing Act (S.1131/H.R.2439)• Requires drug manufacturers to report price
increases 30 days in advance when drugs that cost $100 or more increase in price by more than 10% in 1 year or 25% over 3 years
• Requires justification for price increases and reporting on research, marketing, spending, etc.
• Does not prohibit price increases; simply adds requirement for notification and justification
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The Ask
Cosponsor the Fair Accountability and Innovative Research (FAIR) Drug
Pricing Act (S.1131/H.R.2439) and support drug pricing transparency
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Related Bills• Transparent Drug Pricing Act (H.R.4116)• Prescription Drug Price Transparency Act (H.R.1316)• Improving Access to Affordable Prescription Drugs
Act (S.771/H.R.1776)• Stopping the Pharmaceutical Industry from Keeping
Drugs Expensive (SPIKE) Act (S.1348)
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Frequently Asked Questions•Who would enforce this legislation?US Department of Health and Human Services
•Who else supports this legislation?National MS Society, AARP, Campaign for Sustainable Drug Pricing, Kaiser Permanente, Marshfield Clinic
• Are these requirements realistic?Many manufacturers have already limited year-over-year price increases to 10% or less from 2017-2018
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Questions?
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Example Ask
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Practice the Ask in Your Small Groups
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Develop Your Pitch• Share your storyTalk about how high drug prices impact one of your patients
• Practice your story linking to the ask• Tell your story + “…that’s why we’re here today
asking for your support. We’d like you to cosponsor legislation, S.1131/H.R.2439, to support much needed drug pricing transparency.”
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Final Thoughts