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Market-Based Solutions to Vital Economic Issues
Research
Oct 1, 2019

New Drugs, New Ideas: Payment Policy Innovations for High-Cost Pharmaceuticals

Access challenges associated with high-cost pharmaceuticals have jump started discussion of solutions ranging from state-based boards reviewing drug price increases to harnessing Medicare’s purchasing power for “price negotiation” to old-fashioned price-setting. Consumers, increasingly frustrated with high costs for complex generics such as the EpiPen and novel, million-dollar therapies like Zolgensma, are demanding government action. High-cost pharmaceuticals may be classified into three groups: new modalities, such as gene therapy; old generic, small molecule drugs; and biologics. We focus here on biologics and explore potential solutions.


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