Welcome to the Week in Review.
Historic Drug Prices Law Bring In Savings
The drug price reforms in the historic Inflation Reduction Act are already delivering relief to patients who depend on costly prescription drugs. And even more savings are expected as the law continues to be successfully implemented. A new report from AARP released on Wednesday found that approximately 1.1 million patients on Medicare are expected to reach the new $2,000 out-of-pocket cap between 2025 and 2029 and are estimated to see average savings of $1,100 a year. Further, more than 420,000 people will see annual savings exceeding $3,000 per year. Leigh Purvis, the in AARP’s Prescription Drug Policy Principal and author of the report, emphasized that the $2,000 cap on out-of-pocket costs will shield patients on Medicare who’ve historically had to pay 5 percent of their high-cost prescription drugs in the catastrophic phase, with no limit on the total, resulting in out-of-pocket costs often exceeding $10,000 per year. In addition this week, an analysis released by the Senate Finance Committee on the provision in the drug price law which penalizes drug companies for hiking prices faster than the rate of inflation has shown that it is yielding significant cost savings. The Committee highlighted that the drug companies responsible for price gouging 98 Medicare Part B drugs have been penalized under the inflation rebate program which took effect in January 2023, and as a result, has saved patients and taxpayers $3 billion. Before the passage of the Inflation Reduction Act, drug companies had unfettered power to dictate prices to Medicare, forcing patients to pay excessive amounts for their essential medicines. Now, with these curbs on pharma’s monopoly power firmly in place, patients and taxpayers are finally beginning to get a better deal. — (AARP, Reuters, Senate Finance Committee)
Eli Lilly’s Pump Fake
On Tuesday, Eli Lilly launched discounted versions of its weight loss drug Zepbound. The discounts however will apply only to low-dose vials of the drug sold exclusively through its direct-to-consumer online portal and will only be made available for patients without insurance. Eli Lilly’s claims in its press release that the decision is “expanding access and supply” received sharp criticism throughout the week for grossly misrepresenting who the plan would help. The discounted low-dose vials of Zepbound — previously available as injectable pens with a list price of $1,060 per month — will still remain wildly cost prohibitive at their discounted $399 list price for a monthly supply of 2.5 mg vials. Uncoincidentally, on the very same day that Eli Lilly made the discounted vials available, the company quietly increased the price of its autoinjector pen for patients with commercial insurance but without coverage for the treatment, hiking the monthly list price from $550 to $650. Drug corporations like Eli Lilly have arbitrarily hiked prices on insulins for decades and these limited price reductions are a reminder that leopards don’t change their spots. Innovation is worthless if patients can’t access the medicines they need at prices they can afford. — (STAT, Market Watch)
ICYMI
A major new poll of seven diverse states, commissioned by More Perfect Union Foundation, revealed widespread support for measures aimed at delivering relief to patients facing high prescription drug prices. 91 percent of respondents shared that they support the government taking further action to reduce the prices of cancer drugs and 90 percent of respondents support capping prices on inhalers, insulin, and other medical devices.
Subscribe to the WEEK IN REVIEW here.