Study Finds Government Price-Inflation Penalties Work

By John Wilkerson / September 15, 2020 at 3:08 PM
Penalizing drug makers in Medicare for raising prices too fast would likely not cause them to hike prices in the commercial market, according to a study published Friday (Sept. 11) in the Journal of the American Medical Association . Both the Senate Finance-passed and House-passed drug pricing bills would make drug companies pay rebates to Medicare when they raise prices faster than inflation, and critics of the legislation say inflation penalties could have the perverse effect of encouraging drug companies...

Not a subscriber? Sign up for 30 days free access to exclusive, detailed reporting on drug pricing reforms, Medicaid policy, FDA news and much more.