Wednesday, October 17, 2018

Price Transparency

Some people make a big deal about price transparency in health care.

Others don't.

It seems the US may be bending to the will of the people and will move towards some kind of drug transparency, price regulation, or both.

The federal government said Monday that it wants to force drugmakers to disclose prices for prescription medicines in their TV commercials.

The drug industry's main trade group said drug companies are only willing to disclose the prices on their websites, not in commercials, and they'll start doing that next spring. - KYW

Almost every time DC tries to "help" they make things worse.

Less competition.

Higher prices.

Fewer choices.

The most feared words in the English language, "I am from the government and I am here to help you".

Regarding drug price transparency, Medicare prescription drug pricing has full disclosure. Cost reports for the Part D coverage illustrate the full retail price as well as the copay.

Drugs on the formulary are priced to the consumer at a discount.

Those not on the formulary are not.

I have a client that uses Xarelto and refills in 90 day increments. The retail cost is listed at $1200 for 90 pills. The medication is on most plan formulary's.

For the first 2 refills she has a $0 copay. By the time she get's to her third refill she is entering the donut hole and will pay $130. Her last refill for the year is $380.

Yesterday she complained about having to "pay so much" later in the year and wanted a better plan. She completely ignored the fact she is getting $5,000 worth of medication for less than $500 per year.

Price transparency.

And yet, she still complains.

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