The Pharmaceutical Supply Chain and Prescription Drug Cost
There are many variations on this basic structure, as the players in the supply chain are constantly evolving, and commercial relationships vary considerably by geography, type of medication, and other factors.
Over the last two years there has been increasing recognition by state and federal legislatures that something needs to be done. Consumers and patients—it’s worth remembering—are also voters. That makes them one link in the supply chain that Washington ignores at its peril.
National Academies of Sciences, Engineering, and Medicine. 2017. Making Medicines Affordable: A National Imperative. Washington, DC: The National Academies Press.
Prescription Drug Pricing in the Private Sector,” Congressional Budget Office, 2007.
The Henry J. Kaiser Family Foundation. “New Analysis Finds Out-of-Pocket Prescription Drug Spending Decreasing on Average, But More People Spending in Excess of $1,000 a Year.” October 2016.
“Employer Health Benefits 2016 Annual Survey” (exhibit 7.36), Kaiser Family Foundation and Health Research and Educational Trust, 2016.
“High Priced Drugs: Estimates for Annual Per-Patient Expenditures for 150 Specialty Medications,” AHIP, April 2016.