NPC: Overall, drug price inflation is moderating

The back-and-forth between industry groups might obscure a positive trend: data showing U.S. drug price inflation has moderated in recent years. NPC's statement outlined several findings that point to moderation of costs, including:

A federal report that found drug prices decreased by 0.4% in 2019, after falling by 1.0% in 2018.
A Drug Channels report in 2020 found that drug spending had grown more slowly than every other part of the U.S. health care system—while warning that useful data from Pharmacy Benefits Managers became more scarce in 2020.
An IQVIA report that found net manufacturer prices — the cost of medicines after all discounts and rebates have been paid — declined 2.9% in 2020, continuing a downward trend for the past five years that was interrupted in 2019.

The debate continues as Congress considers legislation that would allow the government to negotiate prices for some drugs. The Build Back Better bill, currently being considered by the U.S. Senate, includes language on negotiating drug prices on a limited basis. Advocates and opponents of a larger government role in setting drug prices are likely to continue to argue about the data as high drug prices—regardless of changes in inflation—continue to be seen as unsustainable by many stakeholders.

Instant Insights /

National Pharmaceutical Council disputes findings by ICER on drug price increases

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