A growing number of states are looking to set up prescription drug affordability review boards to reel in soaring prescription drug prices. In most cases, the proposed boards would allow the states to set pricing caps for certain higher-cost drugs, as well as limit price increasing by drug makers. Yet, contrary to expectations, a new report by the American Consumer Institute (ACI) shows that rather than making drugs more affordable, these policies risk threatening innovation and access to certain cutting-edge drugs, as well as potentially penalizing lower priced generic drugs.
According to a 2019 survey from the Kaiser Family Foundation, 79 percent of Americans felt that prescription drug prices were too high. They’re not wrong. Prescription drug expenditures climbed to a staggering $300 billion in 2016. In fact, the average American pays $1,200 for prescription drugs annually, which has led some states to consider price controls.
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