U.S. Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee, is touting the Congressional Budget Office’s (CBO) recent report examining domestic prescription drug spending and pricing.
According to the CBO analysis, the average price of a Medicare Part D brand-name drug has more than doubled from 2009 to 2018, from $149 to $353. Additionally, the findings determined from 2010 to 2017, net prices for brand-name drugs rose by an average of 6.3 percent faster than inflation annually.
“This report drives home the urgent need to pass robust drug pricing reforms,” Wyden said via a statement. “The average net price for brand-name prescription drugs in Medicare Part D doubled in the last decade – far faster than inflation. It’s time to give Medicare the tools to fight back against high prices.”
Congress is considering comprehensive drug pricing legislation enabling Medicare to negotiate lower prices for the most expensive drugs while requiring drug companies to refund Medicare if prices are increased faster than inflation, thereby creating an out-of-pocket cap on drug spending for seniors while capping the cost of insulin.
In recent years, policymakers have expressed concerns about increased prescription drug prices, noting that the medications reduce the need for services provided by physicians and hospitals while improving quality of life.