Italy serves cautionary lesson for new Trump drug plan

Morningstar

17 April 2018 - The Trump administration is pushing drug plans that tie costs to performance as a way to lower health-care spending in the U.S. In Italy -- where they've used the strategy for years -- such plans haven't brought down costs.

A number of global drug companies, in response to criticism of high prices in the U.S., have recently committed to tying the cost of some of their most-expensive treatments to how well they work.

So called "outcomes-based" contracts -- which reimburse insurance companies for treatments that turn out to be ineffective -- has been trumpeted by the industry as a way to lower health-care costs, while also avoiding broad price cuts.

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Michael Wonder

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Michael Wonder

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Medicine , US , Regulation , Pricing , Italy