Use of Reference Pricing in United States Could Lead to Global Consequences

According to a national poll, Americans think that reducing drug prices is one of the top priorities at the federal level. A new report explores the consequences that reference pricing would bring, both to the US and the global prescription drug market. The authors note that a reference pricing policy could lead to higher prices in other countries. The study authors also note that clinical value might lead to lower prices without the challenges associated with reference pricing.

The authors remark, “Given the size of the pharmaceutical market in the US and other market issues, US reference pricing will likely increase drug list and net prices in other countries. Because of limitations in implementation and collateral effects, US policymakers should consider international reference pricing as a supportive tool alongside other cost containment policies, such as value-based pricing or volume agreements. International reference pricing could limit drug spending in the US but faces implementation challenges and will negatively affect other countries.”Read more here.

(Source: Rand et al., Value in Health, April 2021)