The Flawed Third-Party Payer System Drives the Drug Affordability Problem

The Flawed Third-Party Payer System Drives the Drug Affordability Problem

 

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  • The problem of drug affordability is caused by the perverse incentives created by the third-party payer system that have
    disempowered patients in favor of insurers and other supply-chain intermediaries.
  • The insurance flaws have created pricing systems that inequitably transfer a disproportionate share of drug costs on to patients. This arrangement inappropriately imposes a drug affordability problem on patients who require expensive medicines.
  • The insurance flaws also incent benefit design policies that create additional affordability burdens and unnecessarily increase overall system costs.

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