Price of more than 1,200 drugs outpaced inflation

More than 1,200 prescription drugs rose in price faster than the rate of inflation between 2021 and 2022, according to a report released by the Department of Health and Human Services (HHS) on Friday.

• Between July 2021 and July 2022, the prices for 1,216 drugs rose more than the 8.6 percent rate of inflation; the drugs saw an average price increase of 31.6 percent.
• Some of the drugs that saw the highest dollar amount increases in 2022 include lymphoma medications like Tecartus, Yescarta and Zevalin as well as diabetes medications like Korlym.

Context: The report highlights the potential impact of the drug pricing provisions in the Inflation Reduction Act. The law requires drug companies to pay a rebate to the government if drug prices rise faster than inflation for Medicare.

• The requirement takes effect Saturday, for the 12-month period beginning
  Oct. 1.
• Caveat: the report looks at list prices, which is not the final cost to consumers. List prices don’t account for rebates paid to pharmacy benefit managers, who pass savings on to the public.