US healthcare spending to reach 20% of gross domestic product by 2024

Knowns and unknowns of US drug pricing

US healthcare spending will grow by an average of 5.8% a year from 2014 through to 2024, rising to $5.4 trillion (£3.46trn; €4.92trn) a year—nearly 20% of the nation’s gross domestic product—says a report by government economists. Healthcare Costs by Images Money.

Drug pricing is complex, and its impact on healthcare systems varied. Absent a competitive market, a drug’s price and value may differ.While the Drug Abacus is a good first step as a gauge to align price and value, it will rely on the generation of significantly more safety and effectiveness evidence than currently exists, not only at launch but also post-launch. Moreover, the evaluation of evidence will have to take place in a dynamic setting, i.e., over time, in order to better align price and value. In this respect, pay-for-performance arrangements may be an option in cases in which there is great uncertainty at launch. Here, payers collect real-world data on a drug’s safety and effectiveness post-launch and price is linked to outcomes.

  • Why is pricing in the U.S. different?
  • How are drugs priced in the US?
  • What about R&D and its relation to price?
  • Then what?
  • But does price = value?
  • What are the alternatives?

Read Knowns and unknowns of US drug pricing, medicalxpress, November 11, 2015.

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More information
  • US healthcare spending will reach 20% of GDP by 2024, says report, BMJ 2015;351:h4204, 03 August 2015.
  • National Health Expenditure Projections, 2014–24: Spending Growth Faster Than Recent Trends, healthaffairs, August 2015.

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