March in key to check costs

New research released by HHS correlated the lack of competition in drug markets with higher prices, with the 25 largest pharmaceutical companies controlling around 70% of industry revenues. Consequently, nearly 3 in 10 individuals struggle to pay for the drugs they need.

As part of the Biden administration’s efforts to make health care more accessible, HHS and the Department of Commerce (DOC) released a proposed framework for agencies on the exercise of march-in rights, which specify that price can be a factor in determining whether a drug or other taxpayer-funded invention is accessible to the public or not. The Biden administration explained that because, over the years, taxpayers have spent hundreds of billions of dollars on research to help in the development of new prescription drugs, these taxpayer-funded drugs and inventions should be affordable to the public. Consequently, the DOC and HHS invited the public to provide input on how the framework could promote both access and innovation.

In addition to high drug prices, the recent acceleration of consolidation in health care markets has led to higher costs, less access to care, and worse quality care, especially in rural areas, the statement notes. Additionally, consolidation has led to a rapid decline in independent physician practices as private-equity ownership has ballooned in sectors like nursing homes, physician practices, and hospices.