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New medicines are being launched with record-high prices this year. The median annual price of 13 new drugs the U.S. Food and Drug Administration approved to treat chronic conditions this year is $257,000. Eight of those cost more than $200,000. The median price for the first 30 drugs marketed through mid-July last year was $180,000. According to a recent Journal of the American Medical Association study, the average drug launch prices skyrocketed by more than 8,400% between 2008 and 2021.
The Inflation Reduction Act included several provisions which intended to reduce prescription drug prices. Although legislation can’t limit drug makers on what they can charge, the federal health secretary can negotiate the prices for certain expensive drugs annually for Medicare and require drug companies to issue rebates if the prices are over the inflation rate.
Combating rising health costs and improving employee well-being are two of the most pressing concerns currently facing employers. Employers may want to consider implementing effective strategies to reign in medical spending and address high prescription drug costs. Download the bulletin for more details.