Do drug prices really reflect the value they provide?

A Prescription for Sticker Shock Caused by Drug Costs

Most companies maintain that drug prices should be be based on research, development and production costs, but Dr. Neumann and Dr. Cohen suggested that drug prices should reflect the value they provide, considering such factors as health benefits and cost-effectiveness.

2015 Paper Abstract

Escalating drug prices have alarmed physicians and the American public and led to calls for government price controls. Less visibly, they have also spawned a flurry of private-sector initiatives designed to help physicians, payers, and patients understand the value of new therapies and thus make better choices about their use. Programs recently introduced or advanced by nonprofit organizations, including leading medical professional societies, represent an important innovation in the United States, but they have also revealed numerous analytic and implementation challenges.

Sources and more information
  • Measuring the Value of Prescription Drugs, The New England Journal of Medicine, DOI: 10.1056/NEJMp1512009, November 25, 2015.
  • A Prescription for Sticker Shock Caused by Drug Costs, New-York Times, NOVEMBER 23, 2015.

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