CEVR Researchers Discuss External Reference Pricing in Reducing Prescription Drug Costs, Note Billions in Potential Savings

Investigators at the Center for the Evaluation and Risk in Health (CEVR) at Tufts Medical Center considered the consequences of external reference pricing (ERP) on drug prices in the United States. The researchers analyzed the effects of ERP in other countries and how its implementation in the US could impact innovation. They also considered complementary systems that limit drug costs.

The researchers remark, “Other countries have used value assessments to help establish prices that make sense given societal values and constraints. Rather than import those norms, the United States might consider developing its own system to ensure that true innovation is rewarded, and that we do not overpay for products that deliver marginal health benefits.” Read more here.

(Source: Daniel Ollendorf, Patricia Synnott, Peter Neumannn, The Commonwealth Fund, 5/27/21)