One of the most pressing issues in the implementation of the Affordable Care Act (ACA) is whether the state health insurance exchanges, or marketplaces, will be effective in achieving a primary aim—ensuring patients have access to the pharmaceuticals that they need. Offering patents another affordable option outside of the regulatory control of individual states would provide cost effective access to potentially lifesaving medications. This pharmaceutical marketplace will connect patents to the drugs they need with an estimated savings from 20-50% they would be able to purchase from their ACA or private insurance provider.

After pharmaceuticals dropped in pricing slightly during the recession, drug prices have reignited in the past four years, returning to growth rates of a decade ago. In 2012, prescription drug prices rose 3.6%, twice the 1.7% inflation rate, according to the Bureau of Economic Analysis data show.

• No. 1 Nexium, a heartburn drug, had a 7.8% price hike to a $262 average prescription in the first nine months of 2012, IMS Health reports.
• No. 2 Abilify, for bipolar disorder, increased 10.4% to $642 per prescription.
• No. 3 Crestor, a cholesterol-lowering drug, went up 9.7% to $193 per prescription.

It is estimated that the increase in US drug pricing will continue to increase for the next 5-7 years. Ironically while prices continue to rise, billions of dollars in unused medicines expire before even reaching the customer as they wait in storage.

This exchange platform will connect a global network of both pharmacies and pharmaceutical manufactures to give consumer’s access to the drugs they need at a price consumers can afford. The exchange is expected to go live in late 2014.

My Role: I have taken a board seat on this exciting new venture helping gain the strategic, financial, development and legislative support they need to be successful.