Tag Archives: drug pricing

Debunking The Pharmaceutical Research ‘Free Rider’ Myth: A response To Yu, Helms, And Bach

The claim that “everyone gets a free ride off us,” pushed by pharmaceutical companies to the US public and policy makers, is simply not true. It has been made so often for so long that many hold it as an economic fact, even though no solid evidence is presented to back it up.

June 2, 2017

Drug Prices And Medical Innovation: A Response To Yu, Helms, and Bach

If US policy makers were to enact regulations that drive prices down significantly, many projects that now have positive expected returns would no longer be profitable. Current prices would be lower but so would the expected level of future innovation.

June 2, 2017

Value-Based Pricing For Pharmaceuticals In The Trump Administration

A bipartisan consensus has emerged that something must be done to tackle drug prices. There’s less consensus about what that something ought to be. One alternative, “value-based pricing,” may hold promise.

April 27, 2017

Strategies To Address The Challenges Of Outcomes-Based Pricing Agreements For Pharmaceuticals

Outcomes-based pricing agreements may both improve access to treatments for patients who derive the greatest benefits from them and strengthen pharmaceutical companies’, clinicians’, and insurers’ interest in discouraging the use of ineffective therapies. However, stakeholders are missing...

April 3, 2017

A Better Balance Between Accelerated Access And High-Priced New Drugs: A New Conditional Approval Option

A new form of “conditional approval” could accelerate the approval of new drugs and, at the same time, take at least a small step towards reducing the costs of potentially life-saving drugs.

March 20, 2017

R&D Costs For Pharmaceutical Companies Do Not Explain Elevated US Drug Prices

The pharmaceutical industry often explains that the higher prices they charge in the US provide them with the funds they need to conduct their high-risk research. This claim is empirically testable.

March 7, 2017

A Fair Plan For Fairer Drug Prices

Policies giving federal and state governments authority to set drug prices or limit price increases could have the unintended consequence of reducing the incentive to develop more effective drugs. However, certain regulatory reforms can address these concerns and encourage more robust...

July 11, 2016

‘Value Creation’ And ‘Value Shifting’ In Health Care

The public backlash to the pricing of high-value specialty drugs suggests American society is not comfortable with the idea of value pricing in health care. At its extreme, value pricing can extract enormous prices from seriously stricken patients or their insurers, because better health and...

June 1, 2016

How Would Government Negotiation of Medicare Part D Drug Prices Work?

Medicare Part D premiums have been flat in recent years but will increase by 13 percent from 2015 to 2016. Given these rising costs, a growing number of policymakers believe the government should be allowed to negotiate drug prices in Medicare Part D.

February 1, 2016

Discovering New Medicines And New Ways To Pay For Them

With the growing importance of pharmaceuticals, Anthem and Eli Lilly identified two areas that we believe must be addressed in order to unleash a new wave of innovative approaches to pharmaceutical pricing.

January 29, 2016