New York Times Publishes Letter from AMCP CEO Rosato

Alexandria, Va., May 12, 2015 — The New York Times on May 11 published a letter from AMCP CEO Edith A. Rosato, RPh, IOM, objecting to the newspaper's May 5 editorial supporting government price negotiations of pharmaceuticals. Read letter and original editorial here.


Soaring Drug Prices
MAY 11, 2015

To the Editor:
Re "Runaway Drug Prices" (editorial, May 5):

You are right to be alarmed by the skyrocketing costs of certain therapies. The blunt instrument of government price negotiations called for in the editorial, however, may be neither necessary nor wise.

Regulated prices can simply cause cost-shifting to other consumers. For example, best-price mandates in Medicaid's prescription drug rebate program led some manufacturers to recoup lost profits by charging more to consumers in private markets.

By contrast, the Medicare Part D prescription drug program's private-market approach to drug price negotiations has been widely hailed as a success. The program has come in significantly under its projected budget, and surveys of beneficiaries show high levels of satisfaction. Another private market force that will lower costs is the imminent arrival in the United States of biosimilar versions of expensive biologics.

Your prescription is an overreaction to recent price escalations. It's best for Congress and states to give proven practices used by Medicare Part D and in the private marketplace, as well as new drug discoveries, a chance to stem the tide of high prices.

EDITH A. ROSATO
Chief Executive
Academy of Managed Care Pharmacy
Alexandria, VA