Drugs companies raised prices on hundreds of medications on Jan. 1, with most prices up 5% on average.
Prices went up on 460 drugs, which tracks in line with recent years, according to STAT News.
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Pharmaceutical companies have an unusual ability to perform a relatively unregulated activity and push up drug prices beyond inflation.
The Pharmaceutical Benefits Manager (PBM), is an organization that provides services, educational programs, and patient support services. PBMs can negotiate large contracts with their customers and negotiate with the pharmaceutical companies and pharmacies for the best prices.
President Trump signed an executive order Monday on price transparency in health care that aims to lower rising health care costs by showing prices to patients. The idea is that if people can shop around, market forces may drive down costs.
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Medicaid health plans are starting to pay for non-traditional services such as meals, transportation, housing and other forms of assistance to improve members’ health and reduce medical costs.