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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