Posted by Michael Wonder on 12 Apr 2021
International reference pricing for prescription drugs in the United States: administrative limitations and collateral effects
12 April 2021 - Many countries use international (or external) reference pricing—benchmarking prices against those in other countries—to manage spending on prescription drugs.
By contrast, the US allows manufacturers to set drug prices freely. In December 2019, a major bill passed the House of Representatives that would introduce international reference pricing to reduce US drug spending.
In September 2020, President Trump issued an executive order to apply international reference pricing for drugs purchased under Medicare.
As US policy makers consider adopting reference pricing, it is important to recognise four key administrative issues that have complicated other countries’ experiences.
