Study: US Drug Prices Not Consistently Aligned with Value

Unlike many other countries, health care reimbursements for medications in the United States are not consistently aligned with their value or net health benefits, according to a new study.
 
The study, published in Health Affairs, revealed that US drug prices are not always aligned with the health outcomes achieved.  
 
Researchers from the University of Colorado Skaggs School of Pharmacy and Pharmaceutical Sciences used data from 1985 to 2011 to determine average lifetime quality-adjusted life-years (QALYs), which is used to measure 1 year of perfect health, and payer-related costs to calculate incremental cost-effectiveness ratios for commonly reimbursed cardiovascular drugs.
 
Using cost-effectiveness as a driver for coverage and reimbursement decisions can inform manufacturers as to what constitutes an acceptable cost per unit of health gained for drugs, the researchers noted.
 
“Solutions toward fair drug pricing include the US sending more signals about what we value in health and US decision makers being willing and able to walk away from unfair pricing,” lead author Jon Campbell, PhD, associate professor of pharmacy, said in a press release.
 
The findings indicated a wide spectrum of cost-effectiveness across the 30 drugs evaluated, ranging from cost-saving with increased QALYs to costlier with decreased QALYs. According to the researchers, this range suggests that drug pricing in the United States is not consistently influenced by value, or that such influence is masked by inaccessible factors, such as price discounts.
 
“When we purchase a medical treatment, we expect to get something in return, such as living a longer life or having fewer symptoms,” co-author Melanie Whittington, PhD, research faculty at the CU School of Pharmacy, said in the press release. “The results of our study show the amount insurance providers pay to get 1 more unit of health, such as 1 additional year of life in perfect health, varies considerably and can exceed what is considered good value in other parts of the world. This contributes to higher-priced medical treatments.”
 
The findings highlight the need to debate how to define and use value-based evidence to inform US coverage and reimbursement decision making, the researchers concluded.
 
References
 
Campbell J, Belozeroff V, Whittington MD, et al. Prices for common cardiovascular drugs in the US are not consistently aligned with value. Health Affairs. 2018.
https://doi.org/10.1377/hlthaff.2018.0221.
 
Drug prices not always aligned with value, CU Anschutz researchers say [news release]. University of Colorado’s website. https://www.cuanschutztoday.org/drug-prices-not-always-aligned-with-value-cu-anschutz-researchers-say/. Accessed August 7, 2018.
 
 


Stay up to date on the latest news in specialty pharmacy by getting Specialty Pharmacy Times in your mailbox or inbox for free!

Click here to sign up for free for the bi-monthly Specialty Pharmacy Times print journal delivered to your address.

Click here to sign up for our email newsletters delivered every Monday, Wednesday, and Friday, in addition to breaking news alerts.

Click here to follow us on Facebook. 

Click here to follow us on Twitter. 

Click here to join our LinkedIn group. 


Most Popular

Related Articles

Michael Reff, RPh, MBA, explains how the National Community Oncology Dispensing Association champions for best practices with the use of CDK4/6 (cyclin-dependent kinases 4 and 6) inhibitors for patients with breast cancer.
Study examines whether markers of biological aging due to cancer treatment are related to cognitive function in survivors of breast cancer.
Thom Cohn, Chief Strategy Officer, Asembia, discusses special considerations for the launch of a personalized drug.
Company Profile >
Contributors >
Industry Guide >
Market News >
Peer Exchange >
Conferences >
Subscribe >
Specialty Times Resources
About Us
Advertise
Careers
Contact Us
Terms & Conditions
Privacy
MJH Associates >
Pharmacy Times
OTCGuide
American Journal of Managed Care
Cure
MD Magazine
ONCLive
Targeted Oncology
Physicians' Education Resource
Pharmacy & Healthcare Communications, LLC
2 Clarke Drive
Suite 100
Cranbury, NJ 08512
P: 609-716-7777
F: 609-716-4747

Copyright Specialty Pharmacy Times 2006-2018
Pharmacy & Healthcare Communications, LLC. All Rights Reserved.
 

$vacMongoViewPlus$