New Report Estimates 30% in CMS Drug Savings Using Domestic Reference Pricing Model

A new report estimates that Medicare could have seen savings as high as 30% had a domestic reference pricing approach been implemented. Democrats and Republicans continue to explore price-lowering mechanisms, such as international reference pricing.

“Medicare would have saved 18% to 30% on newly launched drugs from 2015 to 2019 if it had used domestic reference pricing to control prices, and domestic reference prices for most drugs were even above the prices suggested by the Institute for Clinical and Economic Review, according to a report by West Health Policy Center, the University of Pittsburg and the University of California, San Diego.” Read more here.

(Source: John Wilkerson, Inside Health Policy, 9/24/21)