A new report from IMS Health shows net prices for branded drugs are slated to grow more slowly than they have in the past 5 years.
This is a striking contrast from the pervasive myth peddled by the insurance industry and its allies.
The report projects that, through 2021, net prices will grow at 2-5 percent a year.
This comes on the heels of a report from the same group that showed in 2015, net branded drug prices grew at just 2.8 percent—that’s in line with inflation.
It’s important to also understand the difference between net and gross prices. While gross prices often make for splashy headlines, it’s not what drug manufacturers typically are paid and almost never what a patients pays at the pharmacy.
Net prices are far more important because they take into account the discounts and rebates given by drug companies throughout the entire drug delivery ecosystem to help facilitate patient access.
And the fact remains that what an insured patient actually pays for his or her drug is largely determined by a host of other actors in that broader ecosystem, such as PBMs, insurers, and employers.
You can learn more about the complex process with our “Follow the Pill” video:
BIO is committed to ensuring that patients have affordable access to our innovative medicines. But it’s important to separate fact from fiction when it comes to the debate over drug costs and access. This latest IMS report is an important step in setting the record straight.