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Home » News » The ‘Netflix Model’ for Drug Pricing

The ‘Netflix Model’ for Drug Pricing

A recent article published in the Journal of the American Medical Association (JAMA) proposed a new drug pricing model, which the authors dubbed the “Netflix model,” as a potential solution to high drug prices.

The authors propose a subscription-based model for drug purchases through which a payer would subscribe to a pharmaceutical company for its drugs on a renewable contract.

ICON’s Ram Mishra in an LinkedIn post writes that while the model appears to have potential for reducing the burden on payers, there remain some hurdles which were outlined in the research paper.

“Since a huge amount of money needs to be paid, the payer [needs] to have a near-accurate estimate of number of patients across the state to ensure long-term savings from avoided medical costs which might arise in the future,” Mishra writes.

To read Mishra’s full write up on LinkedIn, click here.

Click here to read the full research paper on JAMA. (Paid subscription required)



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