Study: Trump administrations’s ‘price disclosure’ policy unlikely to lower drug costs

Local News

PROVO, Utah — A new study co-authored by Brigham Young University says the Trump Administration’s new “price disclosure” policy that requires pharmaceutical companies to disclose the price of the drugs in advertisements is unlikely to reduce drug prices.

According to Bill Tayler, an accounting professor at Brigham Young University says price disclosure works “absent anything else” but that in the world of pharma and insurance companies, most drugmakers will likely find ways to prevent prices from falling. 

“Legislation requiring pharmaceutical companies to provide equivalent discounts to all payers would do the trick” says Tayler, adding that it would eliminate the burden from health insurance companies from taking on the full cost of drugs while consumers reap lower costs in the form of artificially lower out of pocket cost by the way of rebate and co-pay assistance programs.

A recent op-ed by Stephen Ubi, the president of the trade group “Phrma” published in the USA TODAY said that listing prices would not contribute to lower prices because ultimately “insurers determine what they pay out of pocket.”

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