New Study Questions Administration Plan to Cut Drug Prices
Last May, the Trump administration announced its “American Patients First” plan requiring pharmaceutical companies to reveal drug prices in their television ads. The administration described it as a “Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs.” But a new study in JAMA Internal Medicine, co-authored by a Carey Business School faculty member, disputes the plan’s premise. The study found that price disclosure in ads may cut into demand for more costly drugs. However, price disclosure does not lead to reduced demand when ads include modifiers explaining that insurance coverage