Across the healthcare delivery system, there is pressure to bend the cost curve through lowering prescription drug prices. In the absence of a federal program, state and local governments are adopting drug price transparency laws that require life sciences companies to disclose specific strategic and commercial pricing information. Similar to an earlier generation of laws that focused on a product’s average manufacture price (AMP), the laws that have been recently passed or that are under consideration are generally focused on a product’s wholesale acquisition cost (WAC).
The growth in the number of state and local governments adopting price transparency laws is similar to the way spend transparency rolled out across the country over a decade ago and create an intricate and varied regulatory environment.
The details and complexity of pricing laws differ between jurisdictions. Some laws protect information from public disclosure by explicitly making trade secret protections available, while other laws simply require regulators to keep certain information confidential. As a result, a comprehensive drug price transparency plan must take into account strategic price positioning and tactical data disclosure required by the various laws.
Some of the most common requirements of price transparency laws include:
From strategic launch planning through later stage market positioning, Baker Tilly’s life sciences practice provides integrated pricing support services throughout the product lifecycle. Our team of Value Architects™ is experienced in handling business critical pricing information and deploying strategies to satisfy a company’s legal obligations without compromising proprietary market advantage.
Baker Tilly’s price transparency and reporting services include: