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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 22, 2016 10:28 AM (EDT)
This A.M.BestTV episode explores how prescription drug costs are rising, fueled by new and generic drugs and by increased usage, at the same time that medical costs are trending down. Click on http://www.ambest.com/v.asp?v=prescription816 to view the entire program.
A.M. Best analysts Sally Rosen, vice president, and David Mitchell, senior financial analyst, highlighted those facts and others in a recent Best Special Report, titled, “No End in Sight for Escalating Prescription Drug Pricing Trend.” Go to http://www3.ambest.com/bestweek/purchase.asp?record_code=251161 to read the report.
“There is a dichotomy going on, with medical cost trends going down and prescription cost trends going up by double-digits,” said Mitchell. “The factors involved in this are new and very expensive drugs coming into the market, higher use of prescription drugs, as well as a noticeable increase in the use of generic drugs.”
Rosen and Mitchell discussed how the cost of bringing a new drug to market has increased tremendously, and said that the cost today can be as high as $5 billion, compared with $5-6 million 40 years ago.
“The pharmaceutical companies are trying to recapture some development costs in pricing the prescription cost when the drug goes to market,” explained Rosen.
Recent episodes of A.M.BestTV include:
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv .
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.