The federal government is reaching out to drug companies and insurers to find common ground on tackling high drug prices, but a high-ranking administration official cautioned that any solution is going to be difficult.
The Department of Health and Human Services held a forum Friday on pharmaceuticals to address high prices. The forum, featuring drug company executives, comes at a time when soaring drug prices are a growing concern for most Americans.
“We know that action will be needed from all of us here today,” said Sylvia Burwell, secretary of the Department of Health and Human Services.
Burwell tried to strike an inclusive note in her remarks, highlighting the need to preserve innovation of new drugs.
“I know none of us accepts that we must choose between innovation and a healthcare system that can provide access to affordable medicines,” she said.
Wholesale reforms to address drug pricing haven’t gone anywhere in Congress. Democratic presidential candidate and Vermont Sen. Bernie Sanders introduced a bill earlier this year with a slew of reforms, but it has stalled. Congress did address prices in the recent two-year budget deal that raised the debt ceiling, including a provision that requires generic drug makers to rebate Medicaid if their products get too pricey.
The administration also is pushing state Medicaid directors to ensure that pricey specialty drugs for ailments such as hepatitis get covered. Burwell sent a letter earlier this month to all 50 state directors and pharmaceutical companies underscoring access issues.
Experts at the forum said a solution could have several moving parts. For instance, better data systems and genetic testing could help drugmakers predict more accurately which patients will respond to a treatment, said Mark McClellan, senior fellow at Brookings Institution. McClellan is a former head of the Center for Medicare and Medicaid Services and the Food and Drug Administration.
“In some cases, it substantially reduces the cost of drug development,” he said.
Another part is getting drugs to the market faster.
The FDA approved one controversial drug, a cure for hepatitis C called Sovaldi that costs up to $80,000. By getting drugs to the market faster, it could help ensure market competition, he said.
