Beginning in May of last year, the Trumpย administration began searching for ways to curb out- of-control prescription drug costsโreferringย to the initiative as American Patients First. This effort is finally seeing some traction, with theย administration publishing its first final rule on the matter.
Drug companies will now be โโฆ required to disclose to patients the list price for prescriptionย drugs in TV ads,โ according to the Department of Health and Human Services (HHS).
More specifically, the rule requires prescriptions covered by Medicare or Medicaid that cost $35 orย more per month for a typical course of therapy to be disclosed. Drugs under that threshold areย unaffected.
HHS points out that the 10 most commonly advertised drugs range in price from several hundred toย several thousands of dollars for a typical month of treatment.
If patients donโt understand all of their options or how expensive certain drugs are, they can beย on the hook for way more than they could ever afford.ย This new rule aims to increase price transparency and better protect consumers. HHS hopes thisย transparency will also incite competition and โโฆ [bring] free market forces to a system full of perverseย incentives.โ
This rule wonโt take effect until 60 days after its publication, so employers should expect to see action starting in July. Employers should prepare for increased employee questions regarding drug costs.ย
Stay tuned for more information on industry developments.
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