Drug price increase should be justified

Last month, the U.S. House of Representatives Fundraising Committee unanimously passed the prescription drug STAR bill, aiming to enhance accountability, address key issues of transparency and information disclosure in the medical industry, and ensure that consumers, buyers, payers and taxpayers have a better understanding of this opaque market.           

Drug price increase should be justified.

An important requirement of the STAR Act is that qualified pharmaceutical companies need to publicly explain the large price increases of existing drugs and the high market prices of new drugs.

Specific criteria include:

1. Existing drug prices have risen by more than 10% or $10,000 in a year.           

2. Existing drugs have risen by 25% or $25,000 in three years.           

New drugs on the market are more than $26,000.           

To meet one of these requirements, an explanation must be submitted to the U.S. Department of Health and Human Services (HHS) and posted on the official website of HHS.