Politicians Are At War With The Pharma Industry. And Patient-Consumers Will Be The Losers

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Without a focused effort to clearly make the case for the true value of medicines and drug innovation, consumers' negative perceptions about the industry will persist.

here, these egregious instances, while not representative of industry practices at large, underscore why consumers rightly harbor suspicions about the fairness of drug prices and the profitability of drug companies.revealed that more than 80% of Americans consider the cost of prescription drugs"unreasonable," with an equal percentage believing that pharmaceutical company profits significantly contribute to these high costs.

every stakeholder in the system, including manufacturers, providers, payers and consumers, bears responsibility for its current failures. Under a perverse fee-for-service payment model, consumers are incentivized to demand drugs and services at will, thanks to generous employer-sponsored health plans.

Billed as insurance legislation, ACA promised to lower premiums, provide more competition in markets with few insurance coverage choices and enable Americans to ‘keep their doctor.’ ACA was meant to move healthcare delivery organizations to a better place, defined by ‘value’ and greater accountability. In reality, it has had the: raising costs, dramatically increasing consolidation , constraining choices and achieving precious little to increase transparency.

As the repercussions of the IRA begin to reverberate, we must keep two perspectives in mind. Yes, the pharmaceutical industry bears much of the blame for getting in the government’s crosshairs. However, it has also been unfairly maligned due to legislators and regulators' limited understanding of the complexities involved in bringing new drugs to market–both from an economics and efficacy and safety standpoint.

 

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