Today’s New York Times provides arguments from drug companies justifying the excessive jump in pharmaceutical prices in recent years, saying the higher prices won’t impact patients. 

Hospitals’ top priority is providing patients with safe and effective care, but the skyrocketing costs of pharmaceuticals can make doing so difficult. The high cost of prescription drugs leads to higher out-of-pocket costs for patients, who then may not be able to afford their medications. This may cause them to require further health care interventions – interventions that would have been avoidable if they had been able to take the original prescription. Indeed, these prices are putting a strain on the entire health care system – the drug companies’ statement that they only hurt a hospital’s bottom line is pure fantasy.

And patients aren’t the only ones suffering the effects of the higher prices -- taxpayers are also hurt. Because of the way Medicare pays for many drugs, increasing the base price means higher costs to the Medicare program.

Hospitals have worked hard to hold costs down. The same should be expected from the drug sector. The only ones who benefit from these unsustainable drug prices are pharmaceutical companies and their shareholders.

Headline
The Food and Drug Administration June 22 announced multiple actions to help accelerate early- and late-stage drug development. The actions are part of a larger…
Headline
Hospital and health system leaders gathered June 17 and 18 in Washington, D.C., for U.S. News & World Report’s Healthcare of Tomorrow Conference, focusing…
Headline
The AHA drafted and filed an amicus brief June 17 in the 5th U.S. Circuit Court of Appeals in a case regarding Medicaid financing and provider taxes filed by…
Headline
The Department of Health and Human Services and the Centers for Medicare & Medicaid Services released a proposed rule June 12 seeking to codify the…
Headline
The Centers for Medicare & Medicaid Services and the Department of Health and Human Services issued a request for information June 12 seeking input on CMS…
Headline
The Medicaid and CHIP Payment and Access Commission June 15 released its June 2026 report to Congress. Among the topics discussed, chapter two focuses on…