One solution for rising drug prices in the US is the use of reference pricing, rather than our current system that relies on manufacturers to set prices according to the market. A recent ISPOR article discusses serious consequences that will dampen the positive effects of reference pricing policies. The authors also note possible alternative solutions aimed at reducing high drug costs, such as value-based pricing.
“Failure to account for the key issues in the emerging US approach will lead to overspending from overestimation of prices. Policymakers also need to recognize the collateral effects that the US adoption of international reference pricing may have on other countries’ prices. 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.” Read more here.
(Source: ISPOR, 2021)