A recently-published brief takes a look at value-based pricing and how the U.S. can boost drug competition, both of which are aimed at pulling down drug costs.
The brief was authored by Institute for Clinical and Economic Review President Steven Pearson, George Mason University Center for Health Policy Research Director and Health Policy Professor Len Nichols and Harvard University Malcolm Wiener Professor of Public Policy Amitabh Chandra.
“To achieve the difficult balance between necessary incentives for innovation and affordability, many economics favor ‘value-based’ pricing, in which the price for a new drug reflects an assessment of the comparative effectiveness of the drug compared to other available treatments.”
To read the full brief on Health Affairs, click here.
