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1 1 (February 2016)

handle is hein.amenin/aeiacjl0001 and id is 1 raw text is: KEY PQ~NT$ ~ flijoasncial challenges of introducing pensiar? acre tspecirdg; drags inzd ahrapt zucreoses at OVaYO charged jPr sow aidin' ijtvterzc uwdicatians hone led piryers, ontj~c~(?ns. and 23~iitiCiat~S to derniotd price contents an all drag ntaar{focrarens. ~ 7'hi~ paper wr4ews the conhilxutians of rhmis to iniproveri health rind the strnetn rat and ecanonne fitahires qf rirur; rlotsrhtonrent rirspoasthle fur the price rnereeses. ~ ft argues flet the pr~nronoi driver uf speciohp drug pnutna is thir ha rd u: iced unce~tanty if Pinto pp and resnltng extreme risk ptdrm5g development. Altkouahxonre 1:10 sag proctroes ore crop rre hIp ciritzSOOiOl. ideolog really and polrt3erl Jig rrioti cc ted eras ruiresento doir of the phrirrriaoeotieoi ire4rrstry has oltsoi iran the fleet thor aide aeiplicatiore of orhitrarg prier? comm trots necessordy niust ha nair drug innovation. All health to rirsrakeholrlens slmonid keep this fleet in wind riPen raid rirssing the shvisses inemirred Pp high drug m'rces. Anericaissingular among thenatirionsn that its government does not control orescr ipion medication prices, desoite heavily regulating the pharmaceutical industry in many other respects. Drug prices, however, surface from timeto time as a topic of political debate, The most recent instance centers largely on the high prices pharmaceutical manufacturers have been asking for aparticular classof medications known as specialty drugs No exact definition for specialty drugs exists, but common usage applies the term to drugs that are expensive; address life-th reatening diseases; may becomplicated to produce, store, and administer: and often requireelaboratepatient monitoring. Although drugs and medical devices in general represent a small fraction (about 13 per cent) of total health care expenditures, specialty dr ug Pr! ces temporarily accounted f or the sharPest upticks (around 12 percent) in such spending The increases reliect not only what companies have charged for new drugs upon regulatory approval and launch of sales, but also steady increases :n the prices of some brand spe:i aty druas that have been on the market for some ti mn e. Public and private :nsurers, pharmacies, health systems, and patients stuck with unexpectedly h:gh drug bills have complained Many physicians who prescribe spec:iaty drugs have publicly stateiI ta: specialty drug pricing is out of control a od unsustainable and that patients needing specialty drugs suffer financial hardship and may not com ply with recommended AMERICAN ENTERPRISE INSTITUTE

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