Unbiased Analysis of Today's Healthcare Issues
That is the title of my latest blog post in Health Affairs with co-author Mark Linthicum. The premise is as follows: CVS recently announced its new Transform Rheumatoid Arthritis Care initiative, which aims to reshape coverage of rheumatoid arthritis care through “value-based management strategies including outcomes based contracts and a new indication-based formulary for autoimmune…
Stereotypically, the U.S. health system is seen as one that is expensive and inefficient, but one where patients do get the fastest access to new innovation. However, does that prove true in reality? A paper by Zhang et al. (2017) attempts to answer this question by looking at 45 oncology drugs approved by the FDA…
An interest Health Affairs blog post on outcomes-based pricing from Daniel M. Blumenthal Samuel Nussbaum Neil J. Weissman and Mark Linthicum. Insurers are increasingly tying health service payments to clinical outcomes to improve care value and quality. Outcomes-based pricing—setting treatment reimbursements to reflect their prospectively determined value to patients and the health care system—is a promising alternative payment…
The Economist has an article on the evolution of FDA regulation of pharmaceutical treatments. Brining a drug to market costs billions of dollars. FDA commissioner Scott Gottlieb aims to cut this cost by expediting the drug approval process in three key ways. First, he wants the agency to rethink how much information the FDA demands…
If we’re talking about Medicare’s Part D expansion to cover prescription drugs, the answer is yes according to a paper by Dunn and Shapiro (2018). We examine the impact of Medicare Part D on mortality for the population over the age of 65. We identify the effects of the reform using variation in drug coverage…
According the Centers for Medicare and Medicaid Services’ Office of the Actuary (OACT), in 2016 the U.S. spent $328.6 billion on prescription drugs, or 10% of all health care spending. We also see that prescription drug spending increased 1.3% to $328.6 billion in 2016, slower than the 8.9% growth in 2015. These trends towards more…
Let’s get this out of the way: both are clearly important. Within appropriate screening, patients don’t get the treatment they need. Further, delayed screening can make treatments less effective if the cancer has progressed or metastasized. On the other hand, without effective treatment, screening won’t have a major impact on patient outcomes. The question is,…
The answer is ‘yes’ according to a report by the Council of Economic Advisors (CEA) titled Reforming Biopharmaceutical Pricing at Home and Abroad. Innovations such as new drugs often reduce the price of health even when the new drug is very expensive relative to other goods. Consider the example of a patient diagnosed with HIV…
In his 2018 State of the Union address, President Trump said that “fixing the injustice of high drug prices” will be one of the top priorities of his administration in the coming year. Lower drug prices could directly benefit consumers without insurance or those with high-deductible health plans; commercially insured individuals could hope to see…
Typically, we look at how changes in cost sharing affect patient demand. However, rules regarding patient cost sharing also influence life sciences firms’ decisions about what price they should use for their products. A paper by Herr and Suppliet (2017) looks at the effect of changing cost-sharing rules in Germany in their latest paper. The…