Home Health Are costs for diabetes medicine rising or falling? – Healthcare Economist
Health - May 6, 2021

Are costs for diabetes medicine rising or falling? – Healthcare Economist

Standard knowledge would maintain that the costs are rising…aren’t they? To accurately reply this query, one should outline which costs you’re speaking about. Are we wanting on the record worth that’s broadly out there or the online worth after we bear in mind reductions are rebates life sciences companies pay?

A paper by Sarpatwari et al. (2021) goals to reply this questions for novel therapies for kind 2 diabetes. The drug lessons they examined have been: glucagon-like peptide 1 (GLP1) agonists, dipeptidyl peptidase 4 (DPP4) inhibitors, and sodium glucose cotransporter 2 (SGLT2) inhibitors. Whereas record costs (i.e., wholesale acquisition price, or WAC) for these medicine are broadly out there, web costs are harder to acquire. The authors used data from SSR Well being to measure the quantity of rebates and reductions supplied.

Utilizing these knowledge, they discover that whereas gross costs elevated by 8-15% between 2005 and 2015, however web costs truly fell for two of three drug lessons.

Headlines about rising drug costs will not be specializing in the fitting quantity. Whereas gross costs are a helpful metric to trace, web costs symbolize the true price to well being insurers and governments.

Strategies element: Sources utilized by SSR Well being to measure web whole gross sales, items, and web unit costs.

Web US gross sales within the SSR Well being database have been derived from three sources (10-Ok varieties filed with the Securities and Change Fee, annual experiences, and investor calls) and account for reductions reminiscent of business and Medicaid rebates, particular reductions supplied by the 340B program for sure medicine distributed by safety-net suppliers, and producer coupons that sufferers use to scale back out-of-pocket copayments. SSR Well being estimates of bought items have been obtained from Symphony Well being, an aggregator of pharmaceutical market knowledge


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