What’s Really Behind the Drop in the U.S. Consumer Price Index for Prescription Drugs?

Moira Ringo, VP, Market Access Strategy at Lumanity, was recently featured in two APM Market Access interviews examining the forces behind the largest annual decline in the U.S. Consumer Price Index (CPI) for prescription drugs since 1963. While the White House has attributed the drop to most-favored nation (MFN) policies, Moira offers a more nuanced picture, one shaped by a complex interplay of policy and market dynamics, with significant uncertainty still ahead.

Moira shares her perspectives on:

• Why a declining prescription drug CPI doesn’t necessarily mean American patients are paying less
• Why MFN policies are unlikely to explain the recent CPI decrease and what a more likely explanation is
• How Inflation Reduction Act (IRA) Medicare drug price negotiations are expanding and why their impact will deepen over time
• The role of the patent cliff and biosimilar competition in shaping future drug costs
• How Pharmacy Benefit Manager (PBM) model changes, such as Cigna’s shift to a rebate-free benefit, could further reduce prices in 2027 and beyond
• Why specialty drugs represent a critical gap in current CPI measurement, and what better data would reveal

The articles are available now for current APM Market Access subscribers:

• Experts cast doubt on White House claims that US consumer drug price reduction is due to MFN polices
• Political and market factors expected to influence US consumer drug prices in next few years