Why J&J is putting drug prices on TV

Remember the Trump administration’s plan to force drug companies to include pricing information in their TV ads? It’s not yet a matter of policy, and no one’s entirely clear how it might make medicine more affordable, but Johnson & Johnson went ahead and mounted a pilot project that would comply.

The company is updating ads for its blood thinner Xarelto to include two pieces of information: The drug’s wholesale price is $448 per month, and “most” patients bay between $0 and $47.

But, as STAT’s Ed Silverman reports, the word “most” is a little confusing. Scott White, the J&J group chairman for the North American pharmaceuticals business, said the $0-$47 range reflects what three out of four patients pay out of pocket. And it comes with the disclaimer that what patients pay can vary widely based on their insurance coverage.

But White believes the disclosure will help demystify the often-misunderstood difference between list and net prices for drugs.

“We want to have an open dialogue about true out-of-pocket costs, and we believe this will increase the debate about greater health for society the costs for health care,” he said.

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