Posted by Michael Wonder on 10 Jul 2017
Value based pricing and state reform of prescription drug costs
10 July 2017 - Faced with increasing prescription drug costs and congressional gridlock, some states have enacted meaningful reforms.
In April 2017, New York State became the first public payer in the United States to authorise limits on prescription drug costs based on their therapeutic benefits.
Under its new budget legislation, the state can identify high-cost drugs, determine a value-based price, and use enhanced powers to negotiate supplemental rebates to achieve this target price for its Medicaid program. New York’s Medicaid program is the second-largest in the United States, covering approximately 6 million beneficiaries who account for 10% of national Medicaid drug expenditures.
