In a recent article published in JAMA, the authors note that the US spends more per capita for prescription drugs than any otherOCER (Organization for Economic Cooperation and Development) country. High prices continue to be a source of frustration and concern for many Americans. Medicare’s inability to directly work out pricing arrangements with pharma companies has also contributed to the dilemma. Now, speculation is building that the new Biden administration will form an ICER-like HTA (health technology assessment) institution to independently assess the clinical benefits of a drug and to propose fair market prices. Such a move could provide much-needed pricing regulation while maintaining American innovation.
The article authors remark, “The Biden administration could also plan to establish a Drug Affordability Commission to review the clinical benefits of high-cost drugs and publish voluntary recommendations for negotiated prices. Such a body, which might build on work by the independent nonprofit Institute for Clinical and Economic Review, would parallel the important role that health technology assessment organizations play in other countries, such as Canada, Germany, and the United Kingdom.” Read more here.
(Source: Kesselheim et al., JAMA, 3/2/21)