Goldman and Jena Discuss the Challenges of Value-Based Pricing in STAT News
In a new commentary for STAT News, PHE co-founder Dana Goldman and scientific advisor Anupam Jena discuss the advantages of value-based pricing, pointing out several of the key challenges that complicate the application of health technology assessments. Goldman and Jena make the case that more transparency is needed and that an open-source model would allow underlying assumptions to be assessed, criticized and modified by all stakeholders.
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By: Jason Shafrin, PhD Sr. Director, Policy and Economics and Jacki Chou, MPL Senior Director, Policy and Economics The recent announcement that CVS Caremark will use value-based metrics to inform formulary design at first appears a step in the right direction. However, using value measurements from a single nongovernmental organization—the Institute for Clinical and Economic Review (ICER)—based on a limited picture of treatment value may be problematic. Using this single assessment of value in an effort solely to exclude drugs from a major insurance formulary is even more worrisome and fails to recognize the heterogeneity in patient clinical needs and preferences.