New US Bill Challenges Use of QALY in Drug Value Assessments

Quality-adjusted life years (QALY) is a metric widely used when determining the cost-effectiveness of a drug, often when deciding upon or recommending drug prices. A new bill was approved by the US House Energy and Commerce Health Subcommittee that would, if passed, end the practice of using QALY in drug value-assessments. Proponents of the ban say relying on QALY undervalues the positive effects of therapeutics on people with disabilities.

According to Politico, “The deal is notable because the full committee’s ranking member, Rep. Frank Pallone (D-N.J.), has previously expressed opposition to the bill for fear that it would broadly bar attempts to measure the cost-effectiveness of drugs and undermine upcoming Medicare drug price negotiations. Pallone said that changes to the bill have allayed some, but not all, of his concerns.”

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(Source: Politico, March 9^th, 2023)