Specifically, Reuters on December 30 cited data analyzed by healthcare research firm 3 Axis Advisors (based in the US), showing that more than 140 drug brands will increase prices next month.
The expected price hike comes as the Biden administration announced significant price cuts for 10 high-priced drugs in September. The pharmaceutical industry is also facing inflation and higher manufacturing costs during this time.
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Under President Biden's Inflation Reduction Act (IRA), the government's Medicare health program could negotiate prices directly for certain drugs starting in 2026.
The price hikes also come amid concerns about new disruptions to supply chains due to the protracted conflict in the Middle East, as shippers are forced to halt or reroute traffic from the Red Sea, the world's main East-West trade route.
Meanwhile, several pharmaceutical companies, including GlaxoSmithKline (UK), announced last week that they would cut prices on some asthma, herpes and anti-epileptic drugs in 2024. Of these, at least 15 drugs will be discounted in January 2024.
The decision to lower drug prices comes after several companies announced lower insulin prices earlier this year, in an effort to avoid potential penalties under the American Rescue Plan Act of 2021.
By law, drug companies must rebate Medicaid if drug prices rise above inflation. Starting in January 2024, those rebates could be even larger than the actual net cost of the drug.
These changes are based on list prices, excluding pharmacy discounts and other rebates. Drugmakers have not commented on the information.
CNBC cited US government data showing that in 2022, 9 million seniors spent $3.4 billion (VND8,250 billion) out of pocket on 10 drugs, and some paid more than $6,000 a year for just one of the prescription drugs.
In August, the US reported that nearly 10% of Medicare enrollees aged 65 and older and 20% of those under 65 said they had trouble affording their medications.
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