PCMA president offers suggestions for combating drug price hikes

A recent hearing of the U.S. Senate Special Committee on Aging in Washington, D.C., discussed price increases on non-patented prescription drugs.

In attendance at the hearing were members of the Pharmaceutical Care Management Association (PCMA), which represents pharmacy benefit managers across the nation. PCMA is the administrator of about 253 million Americans who hold health insurance policies through employer plans, self-insurance, Medicare and other plans.

"The single best way to reduce prescription drug prices is to introduce competition in the marketplace," PCMA President and CEO Mark Merritt said. "However, competition is lacking among older, off-patent drugs that treat small populations. This leads to unlimited pricing power and higher profits for certain drug manufacturers."

PCMA members have suggested a number of ways to stem price gouging, including quicker approval of generic drugs by the U.S. Food and Drug Administration (FDA), creating a list of off-patent drugs and developing a less-complicated FDA New Drug Application.