IMA Head of Medical and Scientific Affairs Dr. Ryan Cole joined The National News Desk to discuss new federal data showing prescription drug prices down 3.1 percent from a year ago, the steepest drop since 1963. Dr. Cole credits price transparency and the removal of middlemen. He describes the American drug market as an oligopoly stacked with too many layers, where pharmacy benefit managers set the price, pocket the spread, and leave patients paying a cost nobody can trace.
Critics warn that pushing prices down means less money for research and fewer breakthroughs. Dr. Cole rejects that trade-off, arguing transparency saves patients money without slowing American innovation. He also gives viewers two things to do at the point of care: ask the prescribing doctor whether a generic is available, then ask the pharmacist to check the Trump Rx cash price against the insurance co-pay. Paying cash, he says, is often the cheaper option.
Check out these related resources from IMA below, followed by the full segment transcript.
Transcript
Jan Jeffcoat: The administration promised to slash the cost of prescription drugs, and new data shows prices are falling at the fastest rate in more than 60 years. The cost of prescription drugs is down 3.1 percent from just a year ago, the steepest drop since 1963. Officials are saying greater price transparency and the president’s most favored nation policy, aimed at bringing U.S. drug prices closer to what other countries are paying, along with discounts through Trump Rx, are all benefiting this. Joining us now to discuss is Dr. Ryan Cole, Head of Medical and Scientific Affairs and Senior Fellow of Pathology at the Independent Medical Alliance. Good morning to you, sir. Great to see you.
Dr. Ryan Cole: Great to see you, Jan.
Jan Jeffcoat: This is a pretty remarkable turnaround. The president did threaten big pharma with these massive tariffs if Americans kept paying more than other industrialized nations. Why were Americans paying so much in the first place, and why has this system become so complicated?
Dr. Ryan Cole: Well, complicated is true. It’s more of an oligopoly, not quite a monopoly, but we have too many layers, too many middlemen here in the American system. Other nations have been able to negotiate a controlled price from the drug companies themselves.
But when we layer all these middlemen in between, that cost ends up being very opaque to the patient and gets passed on to the patient at the end at the pharmacy, and we don’t know who’s getting a cut of what. So this changes that, thankfully.
Jan Jeffcoat: Right, because there’s the pharmacy, there’s the insurance provider, the drug company, and the pharmacy benefit manager sitting in the middle there. So walk us through who actually sets the price, who gets paid, and why a patient could sometimes get a better deal paying the Trump Rx cash price than using insurance.
Dr. Ryan Cole: Yeah, so you bring up the important point that the PBM, that middleman, kind of sets the price and they pocket the difference. So by having this new Trump Rx, you can go to your pharmacist and actually see what the real price is, because they’ll give you a list price and have a different net price.
But when you go and pull out your pocketbook, now you know that a big chunk of that money, if you choose to pay cash, is not going to the middleman. It’s saving you money and you’re getting the drug you need at a fair price.
Jan Jeffcoat: Critics say forcing drug prices down could actually come with a cost. They’re saying less money for research, fewer breakthroughs, less innovation. Is that a legitimate concern, or can we lower what Americans pay without sacrificing the next generation of perhaps life-saving drugs?
Dr. Ryan Cole: Well, transparency is going to save people a lot of money. The critics certainly want their big cash cow in between. It’s not going to change the innovation of Americans. We’re certainly going to continue the research. We’re going to continue to advance science. We’re going to find new things. Saving Americans money is certainly not going to stop research.
Jan Jeffcoat: Alright, so make this practical for all the folks right now watching at home. The next time your doctor writes a prescription, what should they ask? What prices should they compare? How do they make sure they’re not paying a dollar more than they have to?
Dr. Ryan Cole: You betcha. Do a simple thing: ask your doctor, hey doc, is there a generic for this? And if he or she says yes, great, ask them to write that, because now most of those generics are available at that cash price, which is more often than not lower than your co-pay. So make sure you take the driver’s seat and ask your doctor that.
And then the second thing is when you go to the pharmacy, just ask, hey, can you check the Trump Rx cash price on this drug? The pharmacy now has that listed against that former higher price. Now you know if you pay cash out of your pocket, it may be lower than your co-pay. You can walk away with the medicine you need and not pay the exorbitant fee.
Jan Jeffcoat: This is such great information. So always ask for the generic. A lot of people don’t even know there’s a middleman getting a cut of all this.
Dr. Ryan Cole: That’s the sad part. And this is where this is a step in the right direction for transparency and saving patients money, definitely.
Jan Jeffcoat: For more information and resources, visit imahealth.org. Dr. Ryan Cole with the Independent Medical Alliance, a wealth of information this morning for us. Thanks for joining us.
Dr. Ryan Cole: Thank you, Jan.
