50.3 F
Park Forest
Friday, October 7, 2022

Center for American Progress Framework for Value-Based Drug Pricing Negotiation

 

A pharmacy technician poses for a picture with prescription medication at a pharmacy in Edmond, Oklahoma, August 2010. Source: AP/Sue Ogrocki

Washington, D.C. —(ENEWSPF)–September 26, 2016.  The Center for American Progress issued an updated policy proposal today to support value-based drug pricing negotiation. CAP’s drug pricing framework would empower Medicare and private payers to negotiate effectively for drug prices, backed by binding arbitration.

The issue brief builds on CAP’s previous drug pricing proposals and outlines a framework to establish a negotiation process for Medicare and private health care payers. This approach incorporates comparative effectiveness research, or CER, which compares the clinical benefits of two or more treatment alternatives, such as prescription drugs.

“This framework sets a much needed pro-patient, value-based system for drug pricing,” said Topher Spiro, Vice President for Health Policy at CAP. “It gives doctors more information on a drug’s clinical effectiveness. It makes critical medicines more affordable to patients and helps put their needs above those of drug corporations’ bottom lines.”

CAP offers four steps to encourage more effective negotiations of drug prices and help curb the cost of existing drugs:

  1. CER review determination
  2. Price recommendation report
  3. Public- and private-sector negotiations
  4. Protecting against excessive price increases

The Congressional Budget Office has said that Medicare would lack sufficient leverage to negotiate lower prices effectively absent additional policy changes, such as permitting Medicare to establish a formulary, or list of covered drugs. Under this proposal, the existence of the arbitration process would provide the needed leverage for Medicare without the need to develop a formulary. Lawmakers should consider adopting this framework to help consumers.

Read the full issue brief, “Negotiation Plus: A Framework for Value-Based Drug Pricing Negotiation,” by Topher Spiro, Maura Calsyn, and Thomas Huelskoetter, online here.

Related resources:

Source: http://americanprogress.org

 

 

 

Comments Box

Recent Articles

Stay Connected

3,846FansLike
1,273FollowersFollow
583SubscribersSubscribe

Local Advertisers

ENEWSPF NEWS ALERTS

Trending

Park Forest
overcast clouds
50.3 ° F
53 °
47.7 °
81 %
2.2mph
100 %
Fri
55 °
Sat
59 °
Sun
70 °
Mon
72 °
Tue
79 °

About Google Ads

The Google-supplied ads that appear on this website are not reviewed ahead of time and differ for each visitor. If anything offensive, inappropriate, or otherwise unwholesome appears, please notify us so we can take steps to block that specific advertiser. Email the URL or advertiser name to [email protected].