Posted by Michael Wonder on 22 Jan 2020
Competition, not capping increases, is the cure for high drug prices
22 January 2020 - Soaring prescription drug prices are putting financial pressure on families across the country.
In response, state legislators are increasingly considering limits on the annual price increase of prescription drugs. But rather than making drugs more affordable, these policies risk reducing consumer access to cheaper, generic alternatives.
In an effort to slow the ongoing rise of prescription drug prices, lawmakers in Maryland created the country’s first state prescription drug affordability board in May of 2019. Among other powers, the board will be able to review and cap the price of generic prescription drugs if they increase by 200 percent or more for patients covered by public state insurance plans. The law also extends to any prescription drug whose price would create vague “affordability challenges” for the state health care system or its patients.
