From 2008 to 2016, increases in medication list prices considerably exceeded inflation,
1 leading to concerns about affordability and access for patients.
2 Trends in list prices, however, do not reflect changes in manufacturer discounts to payers (rebates) and other concessions that have contributed to lower net prices of drugs. The lack of discount data in most prior drug pricing research constitutes a critical limitation because rebates and other manufacturer discounts have increased over time.
3,4 Thus, increases in list prices could reflect rising discounts rather than a change in actual net price. The lack of discount data limits drug pricing policy discussions, particularly because pharmaceutical manufacturers have recently argued that, after accounting for rebates, net prices have increased at the rate of inflation.
5 This is especially relevant in the current legislative environment, when changes to the pharmaceutical reimbursement structure for major public payers are discussed.