DENVER– The state of Colorado has released a report detailing it’s ideal plan for reducing prescription drug costs.
Lieutenant Governor Primavera and The Department of Health Care Policy and Financing made the announcement this morning.
The report details common cost drivers for prescription drugs, and possible ways to reduce them, both throughout the state of Colorado and nationally with the help of the federal government.
According to a study included in the report, U.S. drug prices are almost two times that of international prices, and 1 in 4 Americans who are taking medications are struggling to afford them.
Some common price drivers mentioned were a lack of transparency in price hikes and bad pricing practices like hospital markups and inadequate price control.
After listing the reasons behind rising drug costs, the document then details possible solutions the state is looking to enact.
The first is making drug prices more transparent, including recent price increases, how much goes to middlemen, and what makes up the price of the drug, such as promotional costs.
Another option would be investing in a tool physicians could use, ‘the prescriber tool’, which would give them a full rundown of drug costs, drug alternatives, and even warn prescribers of at-risk patients for opioid addiction.
The state is even considering creating a number of boards to review drug affordability and provide guidance on poor prescribing practices for doctors and hospitals.
This announcement comes seven months after Colorado became the first state to put a price cap on insulin for those with private insurance.
We’ll have more information on this report, and what it means for the state, coming up in our evening broadcasts.