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Fairness in drug prices: do economists think differently from the public?

Published online by Cambridge University Press:  04 December 2018

Antonio J. Trujillo ,
Taruja Karmarkar ,
Caleb Alexander ,
William Padula ,
Jeremy Greene  and
Gerard Anderson
Antonio J. Trujillo
Affiliation:
Associate Professor, Department of International Health, Bloomberg School of Public Health, Johns Hopkins University, MD, USA
Taruja Karmarkar*
Affiliation:
Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, MD, USA
Caleb Alexander
Affiliation:
Associate Professor, Department of Epidemiology, Johns Hopkins Bloomberg School of Public Health, MD, USA
William Padula
Affiliation:
Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, MD, USA
Jeremy Greene
Affiliation:
Professor of Medicine and History of Medicine, Johns Hopkins University School of Medicine, MD, USA
Gerard Anderson
Affiliation:
Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, MD, USA
*
*Correspondence to: Taruja Karmarkar, Doctoral Candidate, Department of Health Policy and Management, Johns Hopkins Bloomberg School of Public Health, MD, USA. Email: tkarmar1@jhu.edu
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Abstract

Using dual-entitlement theory as the guide, we conducted a survey of economists from the National Bureau of Economic Research asking them a series of questions about the fairness of drug prices in the United States. Public opinion surveys have repeatedly shown that the public perceives drug prices to be unfair, but economists trained in laws of supply and demand may have different perceptions. Three hundred and ten senior economists responded to our survey. Forty-five percent agreed that drug prices were unfair when people, specifically low-income individuals, could not afford their prescription medications. Sixty-five percent oppose a dollar threshold, or upper limit, on drug prices. The economists recommend the most promising policy change would be to provide the government additional negotiating power and price controls would moderately impact investment in pharmaceutical research and development.

Keywords

fairnessdual-entitlementdrug pricesopinion survey
Type
Articles
Information
Health Economics, Policy and Law , Volume 15 , Issue 1 , January 2020 , pp. 18 - 29
Copyright
© Cambridge University Press 2018 

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