The art of the deal? Why a money-back guarantee for drugs is a bad idea
'Value-based pricing' for drugs sounds appealing, but it's unlikely to lower patient costs and may let pharma evade a tougher crackdown on prices.
by Ed Silverman
Jul 17, 2017
3 minutes
President Trump likes to boast that he mastered the “art of the deal.”
But one option his administration is considering to encourage lower drug prices, which surfaced in a recent draft executive order, may not be much of a deal for consumers.
The concept has a clunky name — value-based pricing — but it’s fairly simple. One increasingly popular version works like this: A drug maker refunds some money to an insurer if its medicine fails to improve patient health or prevent a costly incident, such as a heart attack.
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