Shafrin in eyeforpharma: Value-based Pricing’s Time Has Come, and It’s Here to Stay
In “The Price of Everything and the Value of Nothing,” PHE Senior Research Economist Jason Shafrin talks prices, politics, and the problem of monopolies with eyeforpharma’s Hugh Gosling.
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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.