Spending in the United States for prescription drugs has grown dramatically over the past decade, with Medicaid pharmacy costs increasing annually at double-digit rates. This trend is not abating; 2006 was the fourth consecutive year average prices of dozens of brand-name drugs widely used by elderly Americans increased more than twice the rate of inflation. NLARx is working with state legislators to reduce drugs prices by establishing cost management councils to facilitate cost-cutting strategies, creating legal mechanisms to address the unconscionable pricing of medicines, regulating price gouging, and setting a reference price as a baseline for negotiation. Other state initiatives include laws to disclose both wholesale and retail prices, and legal actions to address the manipulation of AWP pricing information and enforce Medicaid ?Best Price? provisions. Some of these laws are being challenged in court by the drug industry, and NLARx is participating as an amicus to defend them.

Researching this Issue

Model laws and best practices, testimony supporting these initiatives, and background information and research materials on the pricing of prescription drugs, including reports, court decisions and news articles, are posted here. Other relevant materials may be found on the issue pages relating Medicaid & Medicare, which includes information on price manipulation lawsuits and the cost of government pharmacy benefits; Pharmacy Benefit Managers, which has information on the role of PBMs in drug pricing; and Discount Plans & Purchasing Pools, which has information on state programs to leverage better prices. The Pharma Watch page details drug industry tactics and spending related to drug prices, lobbying and marketing efforts. See also the Related Links below to connect to other organizations and materials relevant to this issue.

Model Legislation
Jun 29, 2010
Model Law: Manufacturer Drug Price Reporting|>>more
Jun 11, 2010
Connecticut Passes Law Insuring Access to VA Pricing for Veterans in Nursing Homes|>>more
Dec 11, 2006
Making Prescription Drugs More Affordable with Senator Sharon Treat of Maine|>>more
>>view all Model Legislation
Sep 16, 2010
NLARx Signs on to Letter to USTR on Pharmaceutical Pricing Chapter in TPP Negotiations|>>more
Feb 18, 2009
Testimony before the Vermont Senate Committee on Health and Welfare|>>more
Feb 05, 2009
NLARx Testimony on Cost Savings Suggestions for Vermont S. 48|>>more
>>view all Testimony
Legal Briefs and Opinions
Dec 19, 2007
Order, NACD v. Leavitt (AMP data)|>>more
Nov 07, 2006
Lawsuit Challenging D.C. Unconscionable Pricing Law|>>more
Related News
Apr 28, 2011
Par to pay $153M in pricing lawsuit settlement|>>more
Apr 12, 2011
American Health & Drug Benefits
A Comparison of Drug Formularies and the Potential for Cost-Savings|>>more
Mar 23, 2011
KV Pharma & The Orphan Drug Act: Jamie Explains|>>more
>>view all News
Feb 10, 2011
Prescription Drugs: Trends in Usual and Customary Prices for Commonly Used Drugs|>>more
Dec 03, 2010
Deloitte Drug Pricing Options Report|>>more
Dec 01, 2010
Medicaid Pharmacy Savings Report|>>more
>>view all Reports
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