scholarly journals The Price to Consumers of Generic Pharmaceuticals: Beyond the Headlines

2020 ◽  
pp. 107755872092110
Author(s):  
Richard G. Frank ◽  
Andrew Hicks ◽  
Ernst R. Berndt
Keyword(s):  
Prescription Drugs ◽  
Price Index ◽  
Generic Drugs ◽  
Consumer Price Index ◽  
The United States ◽  
Out Of Pocket Payments ◽  
Price Indexes ◽  
The Media ◽  
Generic Pharmaceuticals ◽  
Total Price

Generic drug prices have received a great deal of attention in the past few years. Many agencies have conducted investigations into the pricing patterns for generic drugs. Price spikes for several specific generic drugs have also been widely reported in the media. Today, 90% of all retail prescriptions sold in the United States are generic drugs. Thus, these prices affect affordability of prescription drugs. We construct two Laspeyres chained price indexes for generic prescription drugs. The first reflects direct out-of-pocket payments by consumers to pharmacies for dispensing generic prescription drugs. The second measures the total price received by the pharmacy (the direct out-of-pocket payment plus the price paid to the pharmacy by the insurer). The chained direct out-of-pocket consumer price index we construct shows a roughly 50% decline for generic prescription drugs between 2007 and 2016. The total consumer price index for generic prescription drugs fell by nearly 80%.

Product Innovation and Price Measurement

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Product Innovation ◽  
Common Knowledge ◽  
Consumer Price Index ◽  
The United States ◽  
Electronic Products ◽  
Quality Adjustment ◽  
Price Indexes ◽  
Price Measurement ◽  
The Impact ◽  
Methodological Guidelines

This chapter addresses how innovation may affect price measurement—a key issue for the accuracy of measures of principal economic indicators and a long-discussed one. Two main changes related to product innovation are important in this context: new goods (which are often cheaper) are driving old goods out of the market; and new products often offer improved quality. The literature suggests that a failure to properly account for these has added 0.8 percentage points per year to the measured Consumer Price Index in the United States. Quality adjustment approaches in all OECD countries have converged towards general methodological guidelines that represent a common knowledge base. The hedonic methodology is applied in a significant number of countries and for specific categories of goods, in particular electronic products. The use of this approach is exemplified and the impact on price indexes evaluated.

Abstract TMP75: Average Medicare Reimbursement for Stroke Care Has Decreased From 2000-2019

Stroke ◽  
2020 ◽  
Vol 51 (Suppl_1) ◽  
Author(s):  
Andrew R Pines ◽  
Jack Haglin ◽  
Bart Demaerschalk
Keyword(s):  
United States ◽  
Price Index ◽  
Hemorrhagic Stroke ◽  
Consumer Price Index ◽  
Stroke Care ◽  
The United States ◽  
Medicare Reimbursement ◽  
Reimbursement Rate ◽  
Icd Codes ◽  
The Difference

Introduction: There is a lack of data regarding financial trends for procedural reimbursement in stroke care. An understanding of such trends is important as progress is made to advance agreeable reimbursement models in the care of stroke patients. The purpose of this study was to evaluate monetary trends in Medicare reimbursement rates for commonly utilized procedures in stroke care from 2000 to 2019. Methods: Reimbursement data for Current Procedural Terminology (CPT) codes was extracted from the Centers for Medicare & Medicaid Services. CPT codes were determined by frequency of procedures for Stroke-related ICD codes at our institution. All monetary data was adjusted for inflation to 2019 US dollars utilizing changes to the United States consumer price index. Results: After adjusting for inflation, the average reimbursement for all four included procedures within hemorrhagic stroke (ICD I60-I62) decreased by 18.4% from 2000 to 2019. The average reimbursement for two procedures within ischemic stroke (ICD I63), craniotomy and thrombectomy, increased by 3.5% (2003 -2019) and increased 3.0% (2016-2019), respectively. Data was not available for craniotomy prior to 2003, and not available for thrombectomy prior to 2016. Further, the adjusted reimbursement rate for included telestroke codes decreased by 12.1% from 2010-2019. All other included procedures decreased by 3.5% throughout this time. The difference in reimbursement rate between telestroke and other stroke-related procedures was statistically significant (p < .0001). Conclusion: To our knowledge, this is the first study to evaluate trends in Medicare reimbursement for stroke care. When adjusted for inflation, Medicare reimbursement for included procedures has steadily decreased from 2000 to 2019. Increased awareness of these trends is important to assure continued access to quality stroke care in the United States.

scholarly journals Generic Drugs Not as Safe as FDA Wants You to Believe

2019 ◽  
Vol 54 (3) ◽  
pp. 283-286 ◽  
Author(s):  
C. Michael White
Keyword(s):  
United States ◽  
Prescription Drugs ◽  
Generic Drugs ◽  
The United States ◽  
Drug Supply ◽  
Active Pharmaceutical Ingredients ◽  
Pharmaceutical Ingredients ◽  
Time Horizons ◽  
Long Time ◽  
Generic Products

Food and Drug Administration (FDA) rules for the production of prescription drugs are very rigorous and, if followed, guarantees a safe drug supply. For many years, foreign manufacturers have produced substandard generic products and active pharmaceutical ingredients and shipped them into the United States. If the FDA had inspected them with the same rigor as they do domestic manufacturers, they would have found many of these egregious deviations from ethical manufacturing much earlier. Although the FDA is finally stepping up the number of inspections, their current processes still rely on preannounced inspections with long time horizons, so quality issues can be temporarily corrected and documents altered or destroyed.

scholarly journals The Billion Prices Project: Using Online Prices for Measurement and Research

2016 ◽  
Vol 30 (2) ◽  
pp. 151-178 ◽  
Author(s):  
Alberto Cavallo ◽  
Roberto Rigobon
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Economic Research ◽  
Sources Of Information ◽  
Advantages And Disadvantages ◽  
Reliable Source ◽  
Price Indexes ◽  
Retail Prices ◽  
Project Data ◽  
Source Of Information

A large and growing share of retail prices all over the world are posted online on the websites of retailers. This is a massive and (until recently) untapped source of retail price information. Our objective with the Billion Prices Project, created at MIT in 2008, is to experiment with these new sources of information to improve the computation of traditional economic indicators, starting with the Consumer Price Index. We also seek to understand whether online prices have distinct dynamics, their advantages and disadvantages, and whether they can serve as reliable source of information for economic research. The word “billion” in Billion Prices Project was simply meant to express our desire to collect a massive amount of prices, though we in fact reached that number of observations in less than two years. By 2010, we were collecting 5 million prices every day from over 300 retailers in 50 countries. We describe the methodology used to compute online price indexes and show how they co-move with consumer price indexes in most countries. We also use our price data to study price stickiness, and to investigate the “law of one price” in international economics. Finally we describe how the Billion Prices Project data are publicly shared and discuss why data collection is an important endeavor that macro- and international economists should pursue more often.

scholarly journals Food Prices and Rising Energy Costs

1981 ◽  
Vol 10 (1) ◽  
pp. 17-21
Author(s):  
R. McFall Lamm
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
The United States ◽  
Food Prices ◽  
Energy Costs ◽  
Energy Prices ◽  
Policy Makers ◽  
Relative Prices ◽  
Congressional Hearings ◽  
Crude Oil Prices

Higher relative prices for energy and food are often referenced as important continuing problems in the United States. For example, the Council on Wage and Price Stability attributed 5.2 percent of the 18 percent increase in the Consumer Price Index (CPI) in early 1980 to higher crude oil prices and described energy prices as “uncontrollable.” Similarly, the substantial upward movements in food prices during 1978 and 1979 were identified by policy-makers as a major source of inflation and stimulated Congressional hearings and an Administration investigation of the causes of rising food prices.

scholarly journals Influence of non-monetary information signals of the USA on the Ukrainian stock market volatility

2019 ◽  
Vol 16 (1) ◽  
pp. 319-333 ◽  
Author(s):  
Roman Pavlov ◽  
Tetiana Pavlova ◽  
Anna Lemberg ◽  
Oksana Levkovich ◽  
Iryna Kurinna
Keyword(s):  
United States ◽  
Stock Market ◽  
Price Index ◽  
Consumer Price Index ◽  
The United States ◽  
Market Volatility ◽  
Stock Index ◽  
Stock Market Volatility ◽  
Economic Sectors ◽  
The Usa

The Ukrainian PFTS stock index volatility reaction as a whole and its constituent economic sectors (“Basic Materials”, “Financials”, “Industrials”, “Oil &amp;amp; Gas”, “Telecommunications”, “Utilities”) to seven non-monetary US information signals (“Consumer price index”, “Personal spending”, “Unemployment rate”, “Gross domestic product”, “Industrial production”, “Consumer confidence”, “Housing starts”) was carried out for the period 2000–2017 on the basis of closing stock quotations in the trading day format. To assess the “surprise” component direct influence nature of the USA selected non-monetary information signals on the PFTS stock index, an AR-GARCH econometric modelling device was used. The results achieved clearly indicate the presence of some PFTS stock index economic sectors heterogeneous reaction to the United States individual non-monetary information signals announcement. For example, such economic sectors as “Basic Materials”, “Financials”, and “Oil &amp;amp; Gas” volatility response to the US non-monetary information signal “Consumer price index” “surprise” components the opposite of the overall PFTS stock index reaction. It can also be concluded that the United States non-monetary information signals influence on the Ukrainian stock market volatility depends not only on the financial cycle phase and data frequency, but also on the PFTS stock index economic sector.

scholarly journals Innovation-and-Learning-Adjusted Price Indexes for Prescription Drugs

2004 ◽  
Vol 19 (1) ◽  
pp. 31-55
Author(s):  
Sangin Park
Keyword(s):  
Prescription Drugs ◽  
Bayesian Learning ◽  
Generic Drugs ◽  
Antidepressant Drugs ◽  
Annual Growth Rate ◽  
Branded Drug ◽  
Quality Adjustment ◽  
Price Indexes ◽  
Innovative Products ◽  
Advertising Exposure

In general, prescription drugs have an unobservable quality prior to consumption, which is called an 'experience characteristic'. Consumers learn these experience characteristics from both consumption experience and advertising exposure. Based on the Bayesian learning process of experience characteristics and the characteristics approach to demand functions, this paper proposes innovation-and-learning-adjusted price indexes for prescription drugs. This structural approach not only resolves the quality adjustment of new molecules but also avoids arbitrary assumptions on the link-in of generic drugs to the originator branded drug. The suggested price indexes are applied to the data for antidepressant drugs during the years 1980-1995. We have found; (i) the average annual growth rate of the focal price index is about -9.5%, which suggests that the existing price indexes for prescription drugs may seriously overstate the rate of inflation in arapidly growing market with the entry of innovative products; and (ii) consumers' learning about experience characteristics were substantial especially after active generic entry in 1986 and the entry of Prozac in 1988.

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