President Donald Trump has spoken about the cost of drugs frequently. Though not always clearly and consistently, he has called for government negotiation of prices. Drug prices also have caught Congress’s eye, although we’re not quite sure what (if anything) legislators are willing to do about it.
Paul Levy, former chief executive of Boston’s Beth Israel Deaconess Medical Center, recently made a compelling argument in a blog post about why value-based pricing for hospital services ultimately will fail.
In “The Game That Shows Why Value-Based Pricing Is Doomed” on AthenaInsight, Levy argues that the incentives in value-based pricing are all wrong. As a payment model, value-based pricing promotes selfishness but at the same time requires all parties to cooperate, he writes.
It’s not often that anyone criticizes value-based care, and why would they? That would be like opposing the use of grocery coupons. Continue reading
Many Americans think they pay too much for their prescription drugs, especially those who need life-saving medications for cancer and hepatitis C. Why are drug costs so high in the United States? How can reporters better explain the cost squeeze to their audiences?
These were among the questions that Sarah Emond, M.P.P., executive vice president at the Institute for Clinical and Economic Review (ICER) in Boston and Peter Bach, M.D., director of the Memorial Sloan Kettering’s Center for Health Policy and Outcomes in New York City addressed at the Feb. 15 meeting of AHCJ’s New York chapter. Dan Goldberg of Politico moderated the session. Continue reading
Mylan’s price hike for its EpiPen allergy medication fueled an Internet storm this week, with consumers and U.S. legislators expressing outrage over its decision to raise the price about 400% since 2007 to as much as $500 or more. The backlash appeared tied in part to timing as U.S. children head back to school, with parents of those needing EpiPens to treat allergic reactions coming to grips with the hefty price tag.
The incident brought echoes of another drug price hike – the 2015 increase by Turing Pharmaceutical’s malaria and HIV medicine Darapim, another move that brought scrutiny by the House Oversight and Government Reform Committee of the company’s chief executive officer. Continue reading
When Safeway, a grocery store chain, introduced reference pricing for the most commonly used clinical laboratory tests, spending on those tests dropped by 32 percent over three years, according to a recent study.
Using reference pricing, Safeway saved $2.57 million over the three years of the study (2011 to 2013). Of that amount, $1.05 million (41 percent) went back into consumers’ pockets, and the remaining $1.70 million accrued to Safeway, the study showed. Also, reference pricing led to a 32 percent drop in the average price that consumers paid for 285 different lab tests.