AG pushes for transparency, competition in new report
A new report from Attorney General Maura Healey's office found that spending on prescription drugs across Massachusetts -- specifically specialty drugs -- has significantly outpaced overall healthcare spending growth
As spending in the pharmaceutical industry shifts further towards specialty drugs, new steps have to be taken to create competition and ensure price transparency, according to a new report from the Massachusetts Attorney General’s office.
The new report, released Friday, used the AG’s authority to analyze the actual cost of prescription drugs for the major health plans, after factoring in discounts and manufacturer rebates. It found that spending on prescription drugs across Massachusetts -- specifically specialty drugs -- has significantly outpaced overall healthcare spending growth. Specialty drugs are less than 1 percent of all private insurance prescriptions written nationally, but account for 30 percent of prescription drug spending, according to the AG’s office.
While each health plan has a different strategy for negotiating and paying for specialty drugs, plans end up paying similar prices for drugs, at least in the case of the 10 specialty multiple sclerosis drugs examined by the AG’s office.
Based on the report’s findings, the AG’s office recommended reporting requirements for drug rebates in order to understand actual prescription drug spending. The report also recommended continuing to foster competitive business environments, including the availability of generic and biosimilar drugs, and a greater focus on the comparative value of different drugs.
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