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Joe Grogan: "Keynote Address"

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October 28, 2018

This one-day conference explored the current pharmaceutical pricing landscape by bringing together leaders from the pharmaceutical industry, policymakers, legal practitioners, and scholars to engage in novel, interdisciplinary discussions to better understand current challenges and articulate best practices to address these issues. Participants assessed the current challenges presented in drug pricing policy, from development to delivery, in both the United States and international context. We also explored and articulated best practices to expand access to medicines and worked toward developing a plan for disseminating these practices more widely.

PLEASE NOTE: THESE SLIDES MAY NOT DISPLAY PROPERLY ONLINE, BUT THEY ARE READABLE IF DOWNLOADED.

October 28, 2018

This one-day conference explored the current pharmaceutical pricing landscape by bringing together leaders from the pharmaceutical industry, policymakers, legal practitioners, and scholars to engage in novel, interdisciplinary discussions to better understand current challenges and articulate best practices to address these issues. Participants assessed the current challenges presented in drug pricing policy, from development to delivery, in both the United States and international context. We also explored and articulated best practices to expand access to medicines and worked toward developing a plan for disseminating these practices more widely.

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Joe Grogan: "Keynote Address"

  1. 1. Generic Drugs Brand-Name Drugs Plan Year Bene Pays (Counts Toward TrOOP) Plan Pays Bene Pays (Counts Toward TrOOP) Plan Pays Drug Manuf. Discount (Counts Toward TrOOP) Amount that Counts Toward TrOOP 2006 - 2010 100% 0% 100% 0% 0% 100% 2011 93% 7% 50% 0% 50% 100% 2012 86% 14% 50% 0% 50% 100% 2013 79% 21% 47.5% 2.5% 50% 97.5% 2014 72% 28% 47.5% 2.5% 50% 97.5% 2015 65% 35% 45% 5% 50% 95% 2016 58% 42% 45% 5% 50% 95% 2017 51% 49% 40% 10% 50% 90% 2018 44% 56% 35% 15% 50% 85% 2019 37% 63% 30% 25% 20% 5% 50% 70% 80%95% 2020 - beyond 25% 75% 25% 25% 5% 50% 70% 75% 95% Medicare Part D Prescription Drug Plan Coverage Gap Discount Under the BBA of 2018 1
  2. 2. 2 Current Law 2019 Standard Part D Benefit FY 2019 Budget (published prior to BBA- 2018 Enactment) Standard Part D Benefit Deductible ($415) Beneficiary 100% 25% Plan Manufacturer Federal Government Beneficiary 100% 25% Plan Manufacturer Federal Government Deductible ($415) Beneficiary 100% 25% Plan Manufacturer Federal Government Beneficiary 100% 25% Plan Manufacturer Federal Government 50% 25% 80% 80% Generic 37% 75% 63% Initial Coverage Period ($3,820 in total drug costs) Coverage Gap (Donut Hole) ($5,100 in out-of-pocket costs) Catastrophic Phase 25% Brand 75% Generic 37% 75% 63% 80% Brand 25% 75% 70% 80% Initial Coverage Period ($3,820 in total drug costs) Coverage Gap (Donut Hole) ($5,100 in out-of-pocket costs) Catastrophic Phase 5% 15%5% 20% 20% 0% 0% 5% 15%

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