Value-Based Drug Pricing: Watch Out for Side Effects
<p>If value-based pharmaceutical pricing were in place, drug makers would get paid based on the benefits their products provide to patients and society, rather than simply on their production costs. As this new payment model starts to gain traction, Commonwealth Fund President David Blumenthal, M.D., asks in a new post on <em>To the Point</em> how much a currently inexpensive drug like penicillin would cost under this system. He calls for a cautious approach.</p><p>“There is a compelling superficial logic to value-based pricing,” Blumenthal writes. “Why shouldn’t manufacturers charge the full value of the products they produce? Why shouldn’t consumers have to pay it? That logic begins to fray, however, when you think about how other markets work in our capitalist system.”</p>
http://www.commonwealthfund.org/publications/newsletters/ealerts/2016/jul/value-based-drug-pricing Read the post