Price and Practice Transparency

NO HIDDEN SURPRISES

AAM and its member organizations work hand-in-hand with Congress and the FDA to ensure that there is transparency for both consumers and regulators regarding pricing in the pharmaceutical industry. There is no reason that hidden costs should drive up costs for consumers and the AAM routinely educates policymakers and regulators on the benefits of increased industry transparency.

In addition to increased transparency lending itself to decreased consumer costs, producers are also able to benefit from the increased stability and regulatory predictability of a more transparent production environment.  However, the generic marketplace with a constantly fluctuating marketplace demands a different approach from brands

Key Points:

• Generics are different – with different economics, market dynamics and regulatory environments. One-size-all approaches do no work for both brand and generic drugs.
• CPI based rebate penalty threaten generic market and patient access.
• By failing to put sensational reports about high percentage price changes in the context of overall small dollar changes in the price of some generic drugs, many media stories misleadingly suggest to the public that percentage increase in generic drugs is a major concern in health care spending, when the generic marketplace is overall deflationary generic market.
• New regulatory and disclosure proposals around transparency cannot undermines generic competition or create a barrier to patient access by driving prices up.