Why Advertising Prescription Drug Prices Is A 'Step In The Right Direction'
From Texas Standard:
The Trump administration finalized a rule last week that aims to curb the rising cost of prescription drugs. Pharmaceutical companies will have to stipulate the list price of a drug in a TV ad if a month's supply of that drug costs more than $35. The U.S. Department of Health and Human Services says the rule, which encourages drug companies to be more transparent about their prices, should ultimately benefit consumers.
Vivian Ho, director of the Center for Health and Biosciences at Rice University's Baker Institute for Public Policy, says there isn’t specific data to help predict the rule’s effects because it’s never been done before. Still, she says the rule is a “step in the right direction.”
“This is just putting drugs on the same level playing field as any other product we’re shopping for, except that it’s a very expensive product,” Ho says.
What you’ll hear in this segment:
– What economic research says about consumer behavior when it comes to prescription drugs
– How advertising a drug’s list price could change the overall prescription drug market
– What else needs to change to make prescription drugs more affordable
Written by Caroline Covington.