Prescription Drugs

Using manufacturer-reported prescription pharmaceutical prices, we observe that the number of price increases has been reduced considerably since the release of the President’s Drug Pricing Blueprint, compared to the same time period in the year prior.

ASPE analyzed Part D prescription drug event data from 2016 to estimate spending on brand drugs with generic therapeutic equivalents.

Key findings • Expenditures on prescription drugs are rising and are projected to continue to rise faster than overall health spending thereby increasing this sector’s share of health care spending.

Medicare Part B covers infusible and injectable drugs and biologics administered in physician offices and hospital outpatient departments; as well as certain other drugs required by law provided by suppliers such as pharmacies The Part B payment method provides weak incentives for physicians to consider value – that is choose the lowest cost therapy to effectively treat a patient.

 

Pharmaceutical companies conduct clinical trials for many reasons. The most obvious goal of clinical trials is to demonstrate safety and efficacy to gain Food and Drug Administration (FDA) approval. FDA provides guidance to developers about what constitutes acceptable clinical trials and appropriate outcomes.

ASPE ISSUE BRIEF

Dramatic growth in the use of generic drugs has generated substantial savings for American consumers. To examine how the Department of Health and Human Services (HHS) can encourage the use of generic drugs, the Assistant Secretary for Planning and Evaluation (ASPE) examined barriers to, and opportunities for, expanding the use of generic drugs.

U.S. Department of Health and Human Services