White House White Paper on Pharma Pricing Released

The objective of government in biopharmaceutical policy is to ensure that the private sector competes and invests in meaningful innovations that lower the price of health, rather than incentivizing market exclusivity and high prices on products. The two goals of reducing American prices and stimulating innovation are consistent but can be achieved through a combined strategy that corrects government policies that hinder price-competition at home, while at the same time limiting free-riding abroad. One topic discussed in more detail in the report is how to reduce prices that are induced by Medicare and Medicaid reimbursement policies. Other topics include: how to cut the duration of high prices induced by price manipulation and how to enhance price competition in the Pharmacy Benefit Manager (PBM) market. Another discussion, how to raise the innovation incentives to reduce the price of better health in the future, mentioned how to limit the under-pricing of drugs in foreign countries, limit under-pricing domestically, reduce the cost of innovation through change at the FDA, and create reforms that reduce the costs of innovation and raise price competition of new innovations. The report concludes by noting that the two “seemingly inconsistent goals” of reducing American prices and stimulating innovation can be achieved by using a combined strategy, and that preserving this industry and encouraging it to innovate while making drugs more available and affordable for all Am...
Source: Policy and Medicine - Category: American Health Authors: Source Type: blogs