What We're Reading: Impact of Authorized Generics; Harms of Fundraising for Healthcare; White House Mulls ACA Alternative

August 5, 2019
AJMC Staff
AJMC Staff

Authorized generics, released by brand-pharmaceutical companies as a way to deal with competition, can be as profitable as, if not more profitable than, brand-name drugs; an increasing reliance on fundraising appeals for healthcare needs can widen existing disparities and distort markets, particularly for prescription drugs; the Trump administration is considering releasing a healthcare plan in the fall.

Authorized Generics Hindering Competition

Fundraising Appeals for Healthcare Can Worsen Disparities, Distort Markets

White House Considers Releasing Ideas to Replace Affordable Care Act

Authorized generics, released by brand-pharmaceutical companies as a way to deal with competition, can be as profitable as, if not more profitable than, brand-name drugs, Kaiser Health News reported. They do not promote competition, the chief medical officer for drug-benefit manager OptumRx told Congress in April; others say the products may raise prices in the short term. There are now nearly 1200 authorized generics approved in the United States.An increasing reliance on fundraising appeals for healthcare needs can widen existing disparities and distort markets, particularly for prescription drugs, The Los Angeles Times reported. Turning to charity also means patients and their families must devote precious time and energy to raising money. Those turning to fundraising typically have insurance, but struggle with high deductibles or the loss of income due to illness. An executive vice president with the National Multiple Sclerosis Society said the underinsured are affected the most.The Trump administration is considering releasing a healthcare plan in the fall, The Wall Street Journal reported; the White House reportedly wants to be prepared if the Affordable Care Act is overturned. Some options under discussion are protections for people with preexisting conditions, selling insurance across state lines, expanding health savings accounts, linking price transparency to quality metrics, and other moves. But the timing of the announcement is uncertain, and the ideas have yet to win the president’s approval; some are skeptical that a plan will be announced.