Price Controls are Not the Solution to the Annual Increases in Pharmaceutical Costs

Implications: While pharmaceutical companies raised prices at a higher level than general inflation, implementing price controls is not the appropriate means to control drug spend.  More effort needs to be placed on clinical trials and the demonstration of efficacy and value prior to a products release.  This data along with price data needs to be provided to physicians so they can appropriately select a product for their patient. 

Analysis: Given the clamor over health care costs, pharmaceutical companies can become easy targets and while their are certainly many recent examples of medications that were/are pushed by pharma inappropriately, price controls is not the solution to the increases in costs.  The solution is better studies that provide real independent data on the drugs efficacy, value/benefit and cost. This information provided to the physician who can share it appropriately with the patient is the solution.   

In the grand scheme of things regardless of the individual cost or annual increases, drug prices within a population should rise, given that patient adherence rates are typically very poor and prescriptions go unfilled or doses are frequently missed. If the adherence issue is correctly addressed, pharmaceutical costs within a population will actually rise.