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Comment & Response
July 28, 2020

Drug Prices, Rebates, and Discounts

Author Affiliations
  • 1Program on Regulation, Therapeutics, and Law (PORTAL), Brigham and Women’s Hospital, Boston, Massachusetts
JAMA. 2020;324(4):399. doi:10.1001/jama.2020.7983

To the Editor Dr Hernandez and colleagues1 found that list and net prescription drug prices have increased out of proportion to inflation, and that the gap between list and net prices has widened. Most prominently, among non-Medicaid patients (who are mostly covered by Medicare Part D or commercial insurance plans), rebates and other price concessions increased from 23% in 2007 to 51% in 2018. The authors used estimates of discounts (including manufacturer rebates) calculated by SSR Health, which uses a proprietary algorithm to estimate net prices by dividing publicly reported manufacturer revenue by the volume of filled prescriptions for each branded drug.