Drug Pricing Explained
Problem
Unbiased, accessible information about the pharmaceutical supply chain is limited.
Arnold Ventures (AV) is a philanthropy dedicated to tackling some of the most pressing problems in the United States. With an aim to lower drug prices to reduce costs for patients, employers, and taxpayers, AV sought help in producing an unbiased, evidence-based examination of the forces that shape prescription medication costs.
The prescription drug incentive and price environment is exceedingly complex, and despite tremendous policy and media attention on prescription drug prices, there is limited unbiased, accessible information for policymakers and the public. AV understood the potential for an easy-to-understand, interactive microsite to generate robust discussion surrounding issues of medication affordability and patient access.
Solution
NORC authored five research papers and created the Drug Pricing Explained microsite.
Leveraging years of research, policy, and pricing expertise, NORC’s Health Care Strategy (HCS) team examined the prescription drug landscape to identify the five drug treatments that best aligned with the project’s purpose. HCS sought to identify medications that were top-of-mind for Americans due to pre-existing media attention directed to high price or access issues. HCS also identified medications with compelling supply chain dynamics that impact consumer price and access but are often unknown to the general public.
With drugs identified, HCS researched the complete story of each drug—including research and development, patenting, launch, market share, regulation, distribution, and rebates—and produced five research papers that illuminate the factors impacting patient price and access. HCS then created a website that packaged the findings in clear, easy-to-access narratives.
Result
Drug Pricing Explained examines the forces shaping prescription medication costs.
The five supply chain “playbooks” on the microsite are:
- Off-Label Drugs: Same Treatment, Different Costs (Avastin, Lucentis) – A lower price for an equivalent treatment for a common eye condition does not always lead to savings.
- Biologics vs. Biosimilars: How Price Takes a Back Seat (Infliximab) – Competition in the market for an auto-immune disease treatment isn’t fully realized.
- Cell & Gene Therapy: Promising but Pricey (Zolgensma) – A gene therapy for babies with spinal muscular atrophy improves quality of life but costs $2 million per dose.
- HIV Prevention: When Generics Get Crowded Out (PrEP) – A preventive treatment for HIV is highly effective yet remains out of reach for many due to cost.
- Insulin: Uneven Progress Toward Affordability (Insulin) – Given millions of people have diabetes, the marketplace for insulin should be more competitive.
Learn More About the Study
Examine the forces shaping prescription medication costs in five playbooks.