If the states don’t treat pharma as a utility, it may be ‘lights out’ for too many patients
State lawmakers are not counting on Washington to come to the rescue on soaring drug prices. What if pharma were treated as a utility?
Fed up with rising drug costs, a growing number of states are pursuing a novel idea: They want to treat the pharmaceutical industry like a utility and cap what they will pay for certain medicines.
Basically, a newly created rate-setting board or an existing government agency, depending upon the state, would determine an “upper payment limit” for any prescription drug — brand-name or generic — that is considered unaffordable after reviewing cost and pricing data submitted by drug makers. In some states, such a ceiling might also apply to fully insured commercial health plans, not just state health programs. In general, the concept builds on efforts to demand more transparency from the
