Why are prescription drugs so expensive? And what can be done to make them more affordable? A forum held Wednesday in Hartford aimed to answer those questions.
The first panelists to speak at Wednesday's forum all work for or with the pharmaceutical industry, and were given the uncomfortable task of explaining why prescription drugs are priced so high.
State Comptroller Kevin Lembo, who convened the forum, said that drug costs have grown faster than the rest of the health care industry as a whole. Some panelists were quick to refute that, showing figures suggesting that drug costs have actually kept pace with other health care costs.
Panel members talked about factors that drive up the cost of prescriptions -- things like the rising cost of generics, an antiquated tier system for drug pricing, and direct-to-consumer advertising.
But Dr. C. Michael White of the UConn School of Pharmacy said the problem lies in how pharmaceutical companies price their drugs.
"Do they price them based on what it costs to able to manufacture, or only to recoup [research and development]? No," he said. "They price it based on what they think the market has the capacity to pay."
White cited the expensive medicine used to treat Hepatitis C as an example.
"Hepatitis C was so expensive to treat that manufacturers figured they were bringing a drug to market that's going to prevent liver transplants," he said. "And they're very expensive -- we can price it at this level, and that's what they did."
When asked about ways to bring down the price of prescription medication, rather than a comprehensive approach, panelists suggested piece meal changes to the current system. They suggested things like a faster track for approval of generic drugs, and switching to a value-based model for contracting, where health care providers initially allow doctors to prescribe various drugs to treat a certain illness, and over time determine which drugs provide the best outcomes for patients.
"What is needed is moving towards value, so that we can see which drugs are working for patients," said Tara Ryan, Deputy Vice President for State Advocacy for the Pharmaceutical Research and Manufacturers of America. "And I think that all companies recognize they're going to be even more competitive in the marketplace because we're really looking at value driven contracting."
Lembo, who convened the forum, said this is just the first step in a process to improve patient's access to affordable prescription drugs.
