In its 48-page white paper outlining three alternatives to the current pharmaceutical rebate model, the Institute for Clinical and Economic Review (ICER) warns against abrupt changes, according to a Center for Biosimilars report.
ICER in its paper, “Value, Access, and Incentives for Innovation: Policy Perspectives on Alternative Models for Pharmaceutical Rebates,” suggests a new fee model that would aim to prevent pharmacy benefit managers from creating restrictive formularies to lean toward highly-rebated therapies. One concern, however, is that a new set of fees could be implemented to have the same effect.
The paper, citing a 2017 study, found that 41 percent of drug spending is shipped to middlemen, per an Xconomy report.
“Rebates have become an extremely contentious topic, praised by many as the best tool available to provide competitive leverage for payers seeking lower net prices, but reviled by others who view it as the chief sin in a system that punishes sick patients,” the authors of the paper state.
To read the full report on the Center for Biosimilars’ website, click here.