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2016 ; 39
(2
): 143-9
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Paying for On-Patent Pharmaceuticals: Limit Prices and the Emerging Role of a Pay
for Outcomes Approach
#MMPMID26945298
Fuller RL
; Goldfield N
J Ambul Care Manage
2016[Apr]; 39
(2
): 143-9
PMID26945298
show ga
In this article we propose a new approach to pricing for patent-protected
(on-patent) pharmaceuticals. We describe and define limit pricing as a method for
drug companies to maximize revenue for their investment by offering
budget-neutral pricing to encourage early adoption by payers. Under this
approach, payers are incentivized to adopt innovative but expensive drugs more
quickly if drug companies provide detailed analyses of the net impact of the new
pharmaceutical upon total health budgets. For payers to adopt use of a new
pharmaceutical, they would require objective third-party evaluation and
pharmaceutical manufacturer accountability for projected outcomes efficacy of
their treatments on population health. The pay for outcomes underpinning of this
approach falls within the wider aspirations of health reform.