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Decoding Big Pharma’s Secret Drug Pricing Practices
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Decoding Big Pharma’s Secret Drug Pricing Practices

Robert Langreth, Michael Keller and Christopher Cannon
Bloomberg, 2016
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Editorial Rating

8

Qualities

  • Innovative

Recommendation

Given that the list prices for brand-name medications don’t reflect the negotiated prices insurers pay drug manufacturers, how can Americans get a true sense of the cost increases of drugs over time? Bloomberg reporters Robert Langreth, Michael Keller and Christopher Cannon attempt to answer this question via statistical analysis of drug price increases between 2009 and 2015. In the course of their research, the authors examine the degree to which price increases track with discounts and inflation. getAbstract recommends their findings to consumers and those working in the health care industry.

Summary

Drug manufacturers raise the prices of their brand-name products year after year. That said, most Americans understand that the list prices for name-brand drugs can differ vastly from the adjusted prices which health care providers negotiate. Given the disparity between list prices and paid prices – and pharmaceutical companies’ reluctance to make the details of their pricing practices public – how can you calculate the actual cost of brand-name drugs over time?

Bloomberg researchers used data on drug discounts provided by investment...

About the Authors

Robert Langreth is a science and health reporter, Michael Keller is an interactive news reporter, and Christopher Cannon is a data journalist and graphic designer for Bloomberg. 

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