Prescription drug pricing is again on the agenda as legislators return to Tallahassee for the 2024 Legislative Session. On Monday, January 8, 2024, the House Health Policy Committee, chaired by State Representative Randy Fine, heard presentations surrounding international drug reference pricing as House policymakers explore proposals to address the issue.
Andrew Mulcahy, a Senior Health Economist at RAND Corporation, presented a detailed briefing to the Florida House of Representatives Health and Human Services Committee, focusing on drug pricing in the United States compared to other countries. According to his analysis, although generic drugs in the U.S. are generally cheaper, brand-name drugs are significantly more costly, often three times the price of countries like Canada.
Mulcahy commented that this disparity is influenced by the roles of various stakeholders in the U.S. healthcare system, including manufacturers, insurers, pharmacy benefit managers, and patients, who all contribute to determining gross and net drug prices. The RAND study compared U.S. prices with those in 32 higher-income OECD countries; Mulcahy stated U.S. drug prices remained substantially higher after rebates.
Drew Gattine, Senior Policy Consultant at the NASHP Center for Drug Pricing, presented material emphasizing the growing challenge of prescription drug affordability in the United States. He highlighted the increasing costs of prescription drugs compared to other medical services and discussed legislative efforts across states to manage these costs.
Gattine commented on NASHP's model legislation, focusing on international reference rates and upper payment limits to control drug prices. According to Gattine, these measures demonstrate significant projected savings in states like Oklahoma, North Dakota, and Maine. He concluded that NASHP has conducted a thorough legal analysis of its model legislation.
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