How Congress Can Make Drug Pricing More Rational

The public reproach over the price of Mylan’s lifesaving drug EpiPen is the latest imbroglio in a much broader debate over drug costs. At issue is the rising list price on drugs. But as Mylan MYL +3.61% argued, cialis these high reported prices often bear little relation to the real price actually paid, viagra buy after rebates and discounts, by most health plans.

The question is how we can bring more prudence to this complex system, in which drug discounts don’t flow evenly to the patients who need access to these medicines.

Mylan pointed to a long sequence of drug supply middlemen who get a series of rebates, mostly as economic inducements for helping drug makers sell their medicines. To fund these rebates, drug makers push up the list price of their pills, only to furtively pay much of the money back to pharmacy benefit managers later.

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