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NERA Associate Director Dr. Christopher Stomberg published “Drug Rebates: A Peek Behind the Curtain at Drug Prices” in an American Health Law Association briefing. Most people outside the pharmaceutical industry are uncertain about how much prescription drugs cost in the United States or how the final price is calculated. Dr. Stomberg examines manufacturer, pharmacy benefit managers (PBM), and other reports to “pull back the curtain” and describe recent trends in drug costs. He concludes, “the dynamics of drug rebate arrangements are fundamental to a fulsome understanding of how markets operate in the United States,” and that, if recent trends are an indication, the markets are seeing increased competition that is reducing effective net prices consumers pay for pharmaceuticals.

Read the full article here.