Within the past few years, the cost for generic prescription drugs has skyrocketed with prices increasing more than 1,000 percent in some cases. Nearly 10 percent of generic drugs more than doubled in price between July 2013 and July 2014 alone, according to data from the US Centers for Medicare and Medicaid Services. During the same time period, the price of more than 1200 generic drugs increased by an average of 448 percent. For example, Albuterol Sulfate, used to treat asthma, increased from approximately $11 to nearly $434 during that time period, and doxycycline, an antibiotic, increased from $20 to $1,849 for a bottle of 500 tablets. Not only do increased costs place a financial burden on citizens and the government agencies paying for the drugs, in some instances patients may be completely prevented from obtaining the drugs they need.
Sen. Bernie Sanders and Rep. Elijah Cummings began investigating these rising costs last year. They recently introduced the Medicaid Generic Drug Price Fairness Act of 2015 to combat the rising costs of generics. The Act would require manufacturers of generic drugs to pay state Medicaid rebates if generic-drug price growth outpaces inflation. Makers of brand-name drugs are already subject to inflationary rebates, while makers of generics pay a flat rate of 13 percent. The change could save the federal government $1 billion and state programs $750 million over a decade, according to a Sanders aide.
Source: FDA News
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.