Drug price transparency in the United States presents a complex challenge, rooted in the economic concept of willingness to pay. This concept, defined as the maximum price a customer is willing to pay for a product or service, varies significantly among customers due to extrinsic and intrinsic differences. Extrinsic differences, such as those observed in the healthcare payer system, PBMs, or individual consumers, are more easily identified. On the other hand, intrinsic differences require data analysis of prescribing trends to understand customer preferences, an area where pharmaceutical companies excel. The current opaque pricing system allows manufacturers to tailor prices based on individual customer characteristics, despite potential drawbacks for PBMs and payers. This inherent inertia in the system perpetuates the status quo, hindering efforts for transparent drug pricing reform.
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