Journal of Science Policy & Governance
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Volume 25, Issue 01 | October 28, 2024
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Policy Position Paper: Policy Solutions for Enhancing Drug Pricing Transparency and Reducing Health Care Costs in the United States
Rachel L. Marcheskie1, Jeremy R. Ellis2
Corresponding author: [email protected] |
Keywords: drug pricing; health policy; cost-effectiveness; drug transparency; real-time benefits
Executive Summary
The excessive cost of prescription pharmaceuticals in the United States is an often-recognized issue for consumers, healthcare providers, and insurance companies alike. A major contributing factor to excess cost is the lack of transparency in drug pricing, which makes it difficult for stakeholders to understand the actual costs of medications. In this article, we look at two basic policy measures to ameliorate this issue. First, we explore providing consumers with clear information on medication costs at the point of prescription, specifically in outpatient doctors' offices. This policy seeks to empower patients and enhance informed decision-making by integrating drug cost information into electronic health records (EHRs), allowing physicians to discuss cost-effective alternatives with their patients. Second, we investigate potential federal regulations that would require pharmaceutical companies to publicly disclose reasons for price hikes, using specific benchmarks as guidelines. These regulations would mandate pharmaceutical companies to report heavy price increases and the factors contributing to these hikes, thereby holding manufacturers accountable and promoting price stability. By addressing these two policy measures, the article aims to enhance drug price transparency and reduce healthcare costs.
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Background header image courtesy of commonwealthfund
Rachel Marcheskie is a Master of Science in Public Health candidate at Johns Hopkins Bloomberg School of Public Health, with a focus on Health Policy and Management. She holds a Bachelor of Arts from Princeton University’s School of Public and International Affairs. She has conducted health policy research at both the state and city level and contributed to public health projects with various community organizations. Her research interests focus on Medicaid, Medicare, and pharmaceutical policy.
Jeremy Ellis is a medical student at the Johns Hopkins School of Medicine. He holds a Bachelor of Science in Microbiology from the University of Idaho. Jeremy has diverse experience, including research in basic science as well as healthcare policy. His research interests include Medicaid patient follow-up, cost efficiency methods for providers, and improving pharmaceutical transparency.
Jeremy Ellis is a medical student at the Johns Hopkins School of Medicine. He holds a Bachelor of Science in Microbiology from the University of Idaho. Jeremy has diverse experience, including research in basic science as well as healthcare policy. His research interests include Medicaid patient follow-up, cost efficiency methods for providers, and improving pharmaceutical transparency.
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ISSN 2372-2193
ISSN 2372-2193