A law proposed by U.S. Senator John McCain and two democratic legislators would increase transparency in the pharmaceutical industry by requiring them to reveal why it is necessary to raise drug prices. “Drug corporations that choose to increase the price of prescription drugs by more than 10 percent in a year should be required to disclose the information behind this decision to taxpayers, including their spending on research and development, as well as advertising and marketing. Improved access to such information could help consumers, payers, providers, and policymakers assess whether a drug price increase is reasonable.” (United States Senate press release, September 2016)
With drug prices skyrocketing to account for one-fifth of national health spending, too many Americans forego renewing prescriptions. If passed the Fair Drug Pricing Act would test the drug companies claims that the cost of innovation is driving up drug prices. (Forbes, September 15, 2016, by Avik Roy)
Under the act, companies like Mylan who recently increased the cost of EpiPens from $100 to over $600, would have to show why that was necessary. The company is known for marketing generic drugs rather than investing in developing new drugs. (Roll Call, September 15, 2016, by Christina Flom)