The Trump Administration proposed an International Pricing Index for reimbursing physician-administered Medicare drugs. A conservative thought leader proposed a different basket of 'market-oriented' countries. These differ markedly from the U.S. Their governments have a central role in medicines purchase, in contrast to U.S. reliance on private markets.
At the recent ISPOR Annual Conference, OHE’s Chief Executive, Professor Graham Cookson announced a new programme of work on Value 2.0: Assessing the Value of US Healthcare to be funded by PhRMA. Graham was joined by the Innovation and Value Institute’s Executive Director Jenn Bright, and Harvard Medical School Professor Bapu Jena.
Market-Driven, Value-Based Advanced Commitment (MVAC) is a new mechanism to help re-direct private-sector R&D investments where they’re needed most. We propose to use MVAC to encourage investments in tuberculosis (TB), which affects 10 million people worldwide. In this blog post, we reflect on the first round of feedback on our consultation draft on MVAC.
Value-based pricing (VBP) is an efficient method for pricing new drugs. Rate of return pricing could, however, be useful in two cases: treatments for ultra-rare diseases, and ‘cures’ for conditions currently being treated at great expense. Rate of return pricing gives rise to challenges. Two are (i) finding proxy estimates of development costs including failures, and (ii) driving future research towards discovering high-value treatments.