By Julia Vann
Amgen has recently cut costs for their life saving cholesterol medication. The price has gone down by nearly a third of the original cost, dropping from $14,100 down to $5,850.
As a result, monthly payments for consumers is greatly reduced. Depending on their insurance provider, the monthly payment could even be as low as $25. According to CNBC, Amgen cited their participation in the American Heart Association as well as the Trump Administration’s efforts to reduce drug cost as their reasons for lowering the price. That said, it’s not difficult to consider alternative reasons for why the company suddenly lowered their prices.
For starters, Amgen’s competitor stated earlier in the year they intended to lower their own prices. In a competitive market, Amgen would need to lower their prices to continue profiting.
In addition, before the price drops, many insurance companies found themselves hesitant to cover the life-saving drug due to the high cost. As a relatively new drug on the market, insurers didn’t have much guarantee of the effectiveness of the drug, and therefore, refused to cover it in some cases.
Perhaps Amgen, noticing such, decided to lower their prices in hopes it would entice more insurance providers to purchase their drug.
It’s impossible to say without the company confirming it themselves, but the possibility remains.
Regardless of the reason, the lowered cost makes the drug more readily available to customers in need. At the end of the day, that’s what’s most important.
To learn more about recent healthcare news, visit the American Medical Compliance website today.