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How are payers tackling value-based drug pricing?

A growing number of value-based drug pricing arrangements are tying the price of treatments to outcomes. While these payment models are far from prominent now, is it likely that drug makers will have a greater share of the risks and rewards associated with value-based care moving forward?

This is what is written in a feature article at Healthcare Dive titled How payers are tackling value-based drug pricing?  The Healthcare Economist (yours truly) is interviewed and I give my take on these programs.  An excerpt is below.

“Value is not an intrinsic number as value varies depending on the stakeholder of interest,” Shafrin said. For instance, his own research on cancer care has indicated that providers value treatments that offer improvements in average or median survival. Meanwhile, patients value treatments that offer a significant chance at long-term survival even if average or median survival gains are lower. “Value should be defined as ‘value to whom.’”

Go check out the whole article.

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