State leaders propose solutions to rising prescription drug costs

The National Academy for State Health Policy today issued 11 proposals to help states rein in rising prescription drug costs. Developed by a panel of state leaders, the policy options include: increasing price transparency; creating a public utility model to oversee drug prices; bulk purchasing critical public health drugs; using state consumer protection laws to prohibit unfair trade practices; reimporting drugs from Canada; pursuing waivers and legislation to promote purchasing flexibility in Medicaid; enabling states to operate as pharmacy benefit managers; linking prices to return on investment; participating in Medicare Part D through Employer Group Waiver Plans; protecting consumers from misleading coupon programs; and using shareholder activism to influence drug company actions. At the NASHP annual conference today in Pittsburgh, Executive Director Trish Riley said the proposals “serve as a toolbox” for states to explore and discuss. Inpatient hospital drug costs increased more than 38% per admission between 2013 and 2015, according to a report released last week by the AHA and Federation of American Hospitals.