AMA Wants More Drug Price Transparency

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Delegates to the American Medical Association (AMA) annual meeting approved a policy to increase transparency of drug costs by calling on manufacturers to list the suggested retail price of drugs in direct-to-consumer ads. “The AMA will urge the appropriate federal agencies to include that requirement,” an association news statement says.

The statement cites a study indicating that prescription medicines that are advertised directly to consumers saw price increases of 34.2%, compared to a 5.1% increase in other pharmaceuticals. “Pharmaceutical companies know their advertising pays off by having patients pressure physicians to prescribe certain medications that cost more than lower-cost alternatives and are not necessarily as efficacious,” AMA says.

Meeting delegates also called on drug companies to give public notice before increasing the price of certain drugs by more than 10% in a 12-month period. They say such a move would generate information about the most egregious examples of price gouging, particularly for older drugs.

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