Title |
Innovative Contracting for Pharmaceuticals and Medicaid's Best-Price Rule
|
---|---|
Published in |
Journal of Health Politics, Policy and Law, February 2018
|
DOI | 10.1215/03616878-4249796 |
Pubmed ID | |
Authors |
Rachel Sachs, Nicholas Bagley, Darius N Lakdawalla |
Abstract |
In recent years, drug manufacturers and private payers have expressed interest in novel pricing models that more closely link a drug's price to its value. Indication-based pricing, outcome-based pricing, drug licenses, and drug mortgages have all been discussed as alternatives to paying strictly for volume. Manufacturers and payers have complained, however, that Medicaid's "best-price rule" inhibits their ability to enter into these new pricing arrangements. This article examines the best-price rule and assesses to what extent, if any, it might frustrate the goal of paying for value. We conclude that the best-price rule is not as serious a problem as it is sometimes made out to be but that it is also not simply a convenient excuse for refusing to try something new. The law here is complex, and moving to a pay-for-value model for drugs will require close coordination among manufacturers, payers, and regulators. |
X Demographics
Geographical breakdown
Country | Count | As % |
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United States | 22 | 61% |
Unknown | 14 | 39% |
Demographic breakdown
Type | Count | As % |
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Members of the public | 17 | 47% |
Scientists | 15 | 42% |
Science communicators (journalists, bloggers, editors) | 4 | 11% |
Mendeley readers
Geographical breakdown
Country | Count | As % |
---|---|---|
Unknown | 48 | 100% |
Demographic breakdown
Readers by professional status | Count | As % |
---|---|---|
Student > Master | 10 | 21% |
Other | 5 | 10% |
Researcher | 5 | 10% |
Student > Ph. D. Student | 5 | 10% |
Student > Doctoral Student | 3 | 6% |
Other | 5 | 10% |
Unknown | 15 | 31% |
Readers by discipline | Count | As % |
---|---|---|
Medicine and Dentistry | 7 | 15% |
Social Sciences | 5 | 10% |
Economics, Econometrics and Finance | 5 | 10% |
Business, Management and Accounting | 3 | 6% |
Pharmacology, Toxicology and Pharmaceutical Science | 3 | 6% |
Other | 8 | 17% |
Unknown | 17 | 35% |