An Answer to High U.S. Drug Spending?
<p>High prices for brand-name prescription drugs are putting pressure on payers and patients alike. In response, some pharmaceutical manufacturers and private payers have shown an interest in outcomes-based contracts, which tie rebates and discounts for expensive drugs to their effectiveness in treating targeted patients.</p><p>In a new Commonwealth Fund report, health policy expert Elizabeth Seeley and pharmaceutical researcher and regulatory expert Aaron S. Kesselheim, M.D., take a close look at experiences with outcomes-based contracting to assess its benefits and limitations, including the potential to lower prescription drug prices and spending in the U.S.</p>
<p>Outcomes-based contracting could help prevent payers from wasting resources on medications that aren’t as effective outside of clinical trials, the authors say. But their impact on prices so far is questionable. </p>