Matching Drug Prices to Their Clinical Benefit —The Final Frontier?

In this issue of JAMA Dermatology, Egilman et al show how efficiency frontiers (EFs) can be used to align the prices and clinical benefits of biologics for plaque psoriasis. This is particularly timely given that the Inflation Reduction Act of 2022 granted Medicare (the federal health insurance program for those 65 years and older) the right to negotiate drug prices (on the basis of comparative safety, effectiveness, and development costs and subsidies) for the first time. Negotiation is limited to the top 10 highest-spend drugs initially but will be expanded. In addition, as well as limits on above-inflation price increases, a $2000 co-payment cap will be placed on an individual ’s out-of-pocket expenditure per year, with the excess covered by the insurer, federal government, and manufacturers themselves.
Source: JAMA Dermatology - Category: Dermatology Source Type: research