POLITICO Pulses on Launch of IVI's New Open-Source Value Tool
Must-read morning briefing POLITICO Pulse talks with Innovation & Value Initiative (IVI) executive director Darius Lakdawalla on the launch of a first-of-its-kind open-source project for determining the value of medical treatments. IVI, a Precision Health Economics-backed collaboration, is debuting the tool for use in rheumatoid arthritis. “There is nothing worse than cutting valuable dollars and letting wasteful spending multiply,” Lakdawalla says.
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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.