Terri4Trump
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Prescription Drug Prices Are Falling at Historic Levels Thanks to Trump Administration Policies
Prescription Drug Prices Are Falling at Historic Levels Thanks to Trump Administration Policies
While the media continues to claim prescription drug prices are rising, a recent Council of Economic Advisers (CEA) paper shows the opposite: Under President Trump, prescription drug prices are decreasing at rates not seen since the 1960s.
In the eight years prior to President Trump’s inauguration, prescription drug prices increased by an average of 3.6 percent per year. Fast forward to today, and prescription drug prices have seen year-over-year declines in nine of the last ten months, with a 1.1 percent drop as of the most recent month. In June 2019, the United States saw the largest single-year drop (2.0 percent year-over-year decline) in prescription drug prices since 1967.
The media’s narrative about rising drug prices, while perhaps true for individual drugs or certain classes of drugs, is not true for general drug prices due to limitations in frequently cited reports. These misleading reports make broad claims even though they consider only narrow measures like list prices, brand name drugs, or drugs with recent price increases. Additionally, some reports use unknown methodologies (see the Appendix of CEA’s paper for more details about other reports’ flaws).
List prices do not reflect actual costs because drug manufacturers can increase list prices while simultaneously decreasing costs for insurers and consumers through discounts and rebates. Similarly, exclusively focusing on brand name drugs misses the cost savings equally effective generic drugs offer. And only measuring the average price of drugs that recently increased in price completely and conveniently ignores any drugs that had prices remain constant or decline.
ME: The more hate and lies the Left spews out, the more good that Trump does for forgotten Americans
Prescription Drug Prices Are Falling at Historic Levels Thanks to Trump Administration Policies
While the media continues to claim prescription drug prices are rising, a recent Council of Economic Advisers (CEA) paper shows the opposite: Under President Trump, prescription drug prices are decreasing at rates not seen since the 1960s.
In the eight years prior to President Trump’s inauguration, prescription drug prices increased by an average of 3.6 percent per year. Fast forward to today, and prescription drug prices have seen year-over-year declines in nine of the last ten months, with a 1.1 percent drop as of the most recent month. In June 2019, the United States saw the largest single-year drop (2.0 percent year-over-year decline) in prescription drug prices since 1967.
The media’s narrative about rising drug prices, while perhaps true for individual drugs or certain classes of drugs, is not true for general drug prices due to limitations in frequently cited reports. These misleading reports make broad claims even though they consider only narrow measures like list prices, brand name drugs, or drugs with recent price increases. Additionally, some reports use unknown methodologies (see the Appendix of CEA’s paper for more details about other reports’ flaws).
List prices do not reflect actual costs because drug manufacturers can increase list prices while simultaneously decreasing costs for insurers and consumers through discounts and rebates. Similarly, exclusively focusing on brand name drugs misses the cost savings equally effective generic drugs offer. And only measuring the average price of drugs that recently increased in price completely and conveniently ignores any drugs that had prices remain constant or decline.
ME: The more hate and lies the Left spews out, the more good that Trump does for forgotten Americans
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