Last month, 43 states and Puerto Rico sued drug companies for inflating prices by up to 1,000 percent from 2013 to 2015. The lawsuit alleges the unlawful practice of price fixing. But even without collusion, drug companies gouge patients and taxpayers for one simple reason: They legally can.
The price hikes affected the cost of more than 100 generic drugs that treat cancer, diabetes, HIV, arthritis, and other conditions. Far from unusual, they are part of a pattern. Insulin, for example—a drug that treats diabetes—has existed since the 1920s. Between 2012 and 2016, the average price of insulin nearly doubled. This price gouging has led some patients to ration insulin doses, a matter of life and death.
A few years ago, it was EpiPen—the injection for life-threatening allergic reactions—in the headlines. Mylan, its manufacturer, had raised the price from $100 to more than $600 since 2007, before the first generic version was approved. These examples illustrate the dire need for bold legislation that addresses these egregious price hikes, the burden of which falls on consumers.
View the complete June 21 article by Topher Spiro on the Center for American Progress website here.