2. IN THE WAKE OF THE MUCH-PUBLICIZED DRUG PRICE
HIKES OF COMMON PRESCRIPTIONS SUCH AS MYLAN’S
EPIPEN AND TURING’S DARAPRIM, PATIENTS AND
DOCTORS ALIKE HAVE BEEN SCRATCHING THEIR HEADS
ABOUT WHY DRUG PRICES KEEP INCREASING. SOME
REASONS MAY BE THE RISE OF THE COST OF LIVING,
CORPORATE GREED, OR JUST THE FACTS OF SUPPLY AND
DEMAND. REGARDLESS OF THE REASONING, EVERYONE
CAN AGREE THAT DRUG PRICES, WHETHER THEY’RE NAME
BRAND OR NOT, ARE HIGH IN THE UNITED STATES.
3. IN FACT, BETWEEN 2013 AND 2015, NET SPENDING ON
PRESCRIPTION DRUGS BY CONSUMERS IN THE UNITED
STATES INCREASED ABOUT 20%, ACCORDING TO CNN. NOT
ONLY HAVE THE PRICES BEEN INCREASING STEADILY
EVERY YEAR, BUT NEARLY ALL PRESCRIPTION DRUGS
COST ABOUT TWICE AS MUCH AS OTHER DEVELOPED
NATIONS — MEANING DRUG PRICES IN THE U.S. ARE THE
HIGHEST IN THE DEVELOPED WORLD.
4. TO PUT THIS INTO PERSPECTIVE, THIS BLOG WILL
ANALYZE THE COST OF ONE COMMON ARTHRITIS DRUG,
HUMIRA, AMONG SEVERAL DEVELOPED NATIONS. AS AN
INJECTABLE MEDICATION FOR ARTHRITIS, HUMIRA IS
FREQUENTLY USED TO TREAT PATIENTS WITH
RHEUMATOID ARTHRITIS BECAUSE IT’S EASY TO USE AND
QUICKLY REDUCES SWELLING. OTHER THAN THE U.S., THE
DRUG IS MARKETED TO 14 OTHER COUNTRIES.
5. THE NUMBERS BELOW WERE CONDUCTED FROM A 2015
BLOOMBERG NEWS ANALYSIS, IN WHICH SSR HEALTH, WHICH IS
AN INVESTMENT RESEARCH FIRM, USED PRESCRIPTION DATA AND
LIST PRICES TO DETERMINE HUMIRA’S SALES IN THE U.S. BEFORE
DISCOUNTS WERE APPLIED BY INSURANCE COMPANIES. TO
APPROXIMATE THE DISCOUNTS FROM INSURANCE COMPANIES,
SSR HEALTH SUBTRACTED THE ACTUAL SALES REPORTED BY THE
COMPANIES. THEN, BLOOMBERG COMPARED THE AVERAGE
DISCOUNTED PRICE OF A PRESCRIPTION TO LIST PRICES FROM 14
OTHER COUNTRIES, USING LOCAL DATA FROM IHS INC., A DATA
ANALYSIS AND CONSULTING FIRM, AND OTHER SOURCES.
20. SO WHY IS THERE ROUGHLY A $2,000 DIFFERENCE IN
PRICE FOR THE SAME DRUG? IT ALL REVOLVES AROUND
THE COUNTRY’S REGULATORY SYSTEM. BECAUSE THE U.S.
GOVERNMENT DOESN’T NEGOTIATE OR REGULATE PRICES
OF PRESCRIPTION DRUGS, DRUGMAKERS CAN SELL THEIR
PRODUCTS AT WHATEVER PRICE POINT THEY CHOOSE.
OTHER COUNTRIES EITHER HAVE GOVERNMENT AGENCIES
NEGOTIATE THE PRICE WITH DRUGMAKERS, OR THE
COUNTRY’S PUBLIC HEALTHCARE SYSTEM COVERS THE
BULK OF THE COST.