The Hidden Driver of Prescription Drug Costs: New Drug Pricing

In recent months several major Pharmaceutical companies have published the aggregate increase in the price of drugs they manufactured in 2016 as compared to the price of these same drugs in 2015. Two of these studies resulted in the companies calculating year-overyear increases in drug prices of 3.5% and 5.5%, respectively.

Yet, studies performed by independent organizations have generally resulted in significantly higher estimates of Rx charge trend levels, and prescription drugs are often seen as a significant driver of total medical spend. So why the difference?

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