GREED WATCH: Pfizer, Seagan, Endo Among Greediest Drug Companies Hiking Prices Faster Than Inflation Throughout 2023

Prices for 10 Drugs Increased Faster Than Inflation Every Quarter in 2023  

This year, drug companies have hiked the prices of hundreds of lifesaving prescription drugs faster than inflation, forcing Americans to decide between needed medication and basic necessities — all while these big drug companies make billions and pay their CEOs tens of millions. 

Thanks to the Inflation Reduction Act, championed by President Biden and Democrats (and opposed by every Republican) in Congress,  Medicare is better than ever and seniors are protected from outrageous price increases through a new Drug Inflation Rebate Program that requires drug companies that increase prices faster than inflation to pay a rebate to Medicare, saving seniors up to $2,786 per dose on their coinsurance. 

The requirement took effect for Medicare Part B drugs in 2023, and since January, 10 drugs have increased prices faster than inflation every single quarter. These drugs treat life-threatening conditions like infections, blood clots, low white blood cell counts, cancer, hormone conditions, rare diseases, and complications from chemotherapy and kidney transplants. Pfizer is the worst offender when it comes to constantly increasing prices faster than inflation: it manufactures 4 of the 10 drugs with these quarterly price hikes and just acquired Seagan, a company that manufactures a fifth drug on the list. 

Several of the worst offending companies ratcheting up prices for patients also pay their CEOs tens of millions per year.

BIG DRUG COMPANIES INCREASE PRICES WHILE CEO PAY SOARS

• Throughout 2023, Medicare Part B coinsurances were reduced for 47 drugs because their manufacturers raised prices faster than inflation during one or more quarters.
• Manufacturers of 10 drugs, including Pfizer, Seagan, and Endo, increased prices faster than inflation every single quarter since the program started. 
• Pfizer, which manufactures four of the 10 drugs with above-inflation price increases each quarter, paid CEO Albert Bourla $33 million in 2022, a 36% raise over 2021.
• Seagan, which manufactures one of the 10 drugs with above-inflation price increases each quarter, paid its three CEOs in 2022 $57.5 million, $36.4 million, and $32.8 million.
• Endo, which manufactures one of the 10 drugs with above-inflation price increases each quarter, paid its CEO Blaise Coleman $29 million in 2021 and paid out more than $55 million in secretive bonuses to executives in 2022 just before the company filed for bankruptcy.

Ten Drugs Saw Costs Rise Faster Than Inflation Consistently Throughout 2023. For decades, big drug companies have been launching new drugs at sky-high prices and continuously raising prices faster than inflation, hurting the individuals reliant on them all while making record profits. The Inflation Reduction Act requires drug companies to pay Medicare rebates if their drug prices rise faster than inflation, and those rebates are passed on as savings to seniors. Over the course of 2023, 47 drugs had adjusted coinsurance rates after raising prices faster than inflation. Starting on January 1, 2024, 48 drugs will have reduced Medicare Part B coinsurance because their prices increased faster than inflation in the last quarter of 2023. Medicare beneficiaries will save as much as $2,786 per dose thanks to the Inflation Reduction Act’s Drug Inflation Rebate Program.

Out of these 48 drugs, ten drugs have had coinsurance amounts adjusted down by Medicare Part B every quarter since the program took effect.

Table 1: Manufacturers of Medicare Part B Drugs with Adjusted Coinsurance Each Quarter 

Pfizer Manufacturers Four of the Ten Prescriptions – and Just Acquired a Fifth Drug – With the Highest Cost Increases on the List, Despite Raking In Billions and Paying its CEO $33 Million in 2022. Four of the ten drugs with prices that rose faster than inflation every quarter are manufactured by Pfizer. These price increases immediately follow Pfizer’s record-breaking financial performance in 2022 when the company reported over $100 million in revenue for the first time in its 174-year history. Just last month, CEO Albert Bourla, who made $33 million in 2022, bragged about the company’s “strong performance” and “the underlying strength and breadth of our scientific pipeline.” While they ratchet up prices to pad their profits, Americans pay exorbitantly high prices for prescription drugs. Pfizer is a member of the Pharmaceutical Research and Manufacturers of America (PhRMA), which is suing the Biden administration to stop Medicare from negotiating lower drug prices for patients because it would endanger their massive profits.

1 In 3 American Adults Report Being Unable To Take Their Medications As Prescribed Due To High Costs. According to KFF, 1 in 3 American adults report being unable to take their medication as prescribed, demonstrating how high and rising drug prices are negatively impacting health outcomes for Americans struggling with affordability challenges. Existing racial and ethnic economic disparities place additional pressures on racial and ethnic minorities and make it even more challenging to keep up with drug prices rising faster than inflation.

Background

The Inflation Reduction Act has also brought down the cost of prescription medications for seniors on Medicare by capping insulin costs at $35 per month, providing free vaccines, and allowing Medicare to negotiate drug prices directly with pharmaceutical companies. This is just the beginning: In 2024, seniors with the highest drug costs will see their out-of-pocket costs capped at about $3,300 per year, and in 2025, all seniors’ total drug costs will be capped at $2,000 per year. In 2026, new savings from Medicare’s drug price negotiation will take effect. Together, these provisions will save seniors thousands of dollars on prescription drugs. These policies lower costs and improve access to care, which are essential for improving the health and well-being of millions of Americans nationwide.