Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Photo: George Frey/Getty Images
Two factors contribute to rising drug costs — price increases for existing drugs, and new drugs coming to market with high price tags.
The big picture: Each of those factors affects different parts of the market, according to a study published in the latest issue of Health Affairs. New products largely drive the cost increases for generics and specialty drugs, the study found, but price hikes on existing treatments drive the rising cost of brand-name drugs.
My thought bubble: A lot of the political debate over drug prices falls along these same lines.
- The pharmaceutical industry would rather have a conversation about new specialty drugs that carry high price tags, but which often work a lot better than other, older treatments.
- But the industry’s critics point to steep price hikes on old drugs — insulin is a prime example, as was the EpiPen — that are getting more expensive even though they’re not changing.
- We’ll see plenty of both in 2019.
Go deeper: The drug pricing maze