PhRMA critical of 'misleading' Medicare Part D drug cost figures

US trade group PhRMA has said that new government data on the cost of prescription drugs paints a ‘misleading picture’ about the Medicare Part D program because it fails to include discounts and rebates negotiated directly with manufacturers.

The figures show that spending on prescription drugs in Medicare Part D increased by 17% from 2013 to 2014 to $121 billion – although PhRMA believes a figure of around half that total may be more accurate.

This data has been published by the Centers for Medicare & Medicare Services (CMS) as part of the Obama administration’s drive ensure information such as the cost of prescription drugs is in the public domain.