Effects of innovation and insurance coverage on price elasticity of demand for prescription drugs: Recent evidence from pharmacoeconomics.

Conclusions: The fundamental disconnect between drug pricing and innovation costs demands public attention and policy intervention, which remain largely elusive to date. Gaming the system in the name of invention and discovery to reap additional benefits at the expense of consumer health and income brings to question the offsetting benefits of firm innovation, besides raising separate issues of fairness and equity. Innovation needs to be considered from the perspective of value lines and beyond traditional incentives to drug utilization, with or without insurance coverage. Cost-effectiveness and cost-benefit analyses will figure prominently under a value-based system of resource allocation, insurance, medical prescription, supply, purchasing, and reimbursement. PMID: 32432950 [PubMed - as supplied by publisher]
Source: Journal of Medical Economics - Category: Health Management Tags: J Med Econ Source Type: research