Value-Based Pricing

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.

OHE Lunchtime Seminar with Steve McKenna, 17th September 2019. The seminar will examine conceptual and practical aspects of measuring value in health care.

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.

In this OHE Seminar Briefing, Dr Steven Pearson, President of ICER, sets out ICER’s early experiences of using HTA to assess gene therapy in the US, setting out four primary challenges.

Multi-Indication Pricing: Practical Solutions and Steps to Move Forward. A summary of an HTAi panel session.

OHE Lunchtime Seminar with Mariana Mazzucato on Re-imagining Health Innovation to Deliver Public Value. 28 September 2018 12:00-2:00pm.

What would be the price for an orphan drug that generate rates of return no greater/smaller than the industry average? Is it reasonable?

The OHE has published a report exploring the impact on payers, patients and innovators of differential prices for different uses of pharmaceuticals.

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