State lawmakers in the Vermont have proposed numerous bills to clamp down on rising drug prices that they view as a matter of accountability for the pharmaceutical industry. These bills will require drug companies to justify their pricing, providing evidence of any recent increases for certain medicines. Legislators hope this attempt at transparency will force drug companies to revisit their pricing strategies and in some cases, change them. This may be a forlorn hope as they have to balance competing demands for cheaper medicines from their constituents against the demands of the market. Drug companies argued that they are paying higher rebates for negotiated coverage of their products with health insurers. Furthermore, the cost of these rebates is rising compared to their sales hence the reason for the price hike.
State lawmakers in the US have proposed numerous bills to clamp down on rising drug prices that they view as a matter of accountability for the pharmaceutical industry. These bills will require drug companies to justify their pricing, providing evidence of any recent increases for certain medicines. Legislators hope this attempt at transparency will force drug companies to revisit their pricing strategies and in some cases, change them. This may be a forlorn hope as they have to balance competing demands for cheaper medicines from their constituents against the demands of the market. Drug companies argued that they are paying higher rebates for negotiated coverage of their products with health insurers. Furthermore, the cost of these rebates is rising compared to their sales hence the reason for the price hike.