New Year = New Medication Price Increases
Starting January 1st, over 550 medications increased their price a median 5% according to a report by 3 Axis Advisors. More price increases are expected over the next few weeks. Many drug manufactures have pledged to not increase medication prices above 10% a year due to increasing public scrutiny. Manufacturers increasing prices include Pfizer (90 medications), GlaxoSmithKline (30 medications), and Teva (15 medications).
Manufacturers have defended these price increases by stating that the net cost of medications after discounts and rebates has decreased over the last two years. SSR Health reports that net drug prices have decreased 3.1% in 2019. This data further stresses the importance for employers to optimize contracts with PBMs. Crumdale Partners stresses the importance of ensuring 100% of rebates are provided to all employers.
The American College of Allergy, Asthma, & Immunology estimates approximately 2.2% of children and adolescents have a peanut allergy. With a list price of nearly $11,000 per year, this medication is expected to have a fairly significant impact to employers pharmacy spend.