As prescription drug prices continue to soar, Eli Lilly as well as Company CEO David Ricks told CNBC in which reducing the gap between list prices as well as what consumers pay will be a “not bad idea.”
“the idea’s time for a change of the system,” Ricks told CNBC’s Meg Tirrell on “Power Lunch” Thursday.
“With the adoption of high-deductible plans, patients are subjected to the list cost,” said Ricks, who was in Minneapolis for the Piper Jaffray Heartland Summit, an annual health-care conference. “genuinely, they’re paying the most. as well as in many cases, they have a chronic disease in which won’t be changed by the fact in which they have to pay a lot or a little. They’re just suffering.”
Prescription drug prices are increasing at a rate of 10 times the cost of inflation, according to a government report released in March of This specific year.
Meanwhile, the battle over who benefits the most through rising drug prices continues.
While pharmaceutical companies as well as manufacturers often benefit through higher prices, so do pharmacy benefit managers.
Pharmacy benefit managers, or PBMs, act as middlemen between insurance companies as well as pharmacies, determining which pharmacies fall within a participant’s plan as well as negotiating the prices of medicines within each plan. Manufacturers provide rebates to the pharmacy benefit managers in return.
Drug manufacturers say PBMs are benefiting through higher prices. PBMs, however, say manufacturers are at fault for setting higher prices within the first place.
Ricks said his company will be “deeply bothered” by This specific system as well as in which as list prices rise, Eli Lilly’s net pricing has “basically” been flat since 2009.
“Where’s all in which money going within the middle?” he asked. “the idea’s going to negotiators within the middle. however not to patients, who are increasingly subjected to the list cost. as well as they have to make choices [about what to spend money on] in which they shouldn’t have to make.”
In May, President Donald Trump unveiled a program in which limits drug prices on some medications for Medicare users.
Under the Medicare Part D plan, some portion of the discount or rebate received through drug manufacturers has to be shared with patients.
In a speech, Trump chastised the middlemen who become “very, very rich” off the current health-care system, vowing in which they “won’t be so rich anymore.”
The plan was praised by many, however the idea stopped short of allowing Medicare to work directly with manufacturers on pricing.
Ricks said reducing the pricing gap will be “a better system as well as long term more stable for us as an innovator.”
“This specific administration will be moving the market in in which direction,” he said. “I think in which’s a not bad thing.”