Aligning drug prices with ICER estimates could save tens of billions of dollars — JAMA paper
The passage of the Inflation Reduction Act gave Medicare the power to negotiate prices for certain drugs — and pegging those prices to ICER’s value estimates could save billions of dollars, according to a paper published late last week.
The paper, written by Kai Yeung out of the University of Washington’s School of Pharmacy and several others and published in JAMA Health Forum, wrote that interest in lowering drug spending is high among payers, noting that the National Academy of Medicine has recommended basing drug prices on value. In concept, tying drug prices to the amount of benefit observed could “preserve incentives for innovation,” they wrote.
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