International Reference Pricing in the Context of U.S. Drug Policy
Name
10041177.pdf
Description
Accepted version
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1.06 MB
Format
Adobe PDF
Checksum (MD5)
d2890527d28d30ba7a3c8a01ffc8d04f
Author(s)
Frank, Richard
Conti, Rena M
Gruber, Jonathan
Date Issued
July 14, 2022
Journal
Journal of Health Politics, Policy and Law
Publisher
Duke University Press
Citation
Frank, Richard, Conti, Rena M and Gruber, Jonathan. 2022. "International Reference Pricing in the Context of U.S. Drug Policy." Journal of Health Politics, Policy and Law.
Version
Author's final manuscript
Abstract
Abstract
International Reference Prices (IRP), also called External Reference prices (ERP), are widely used across developed nations. IRPs use the prices paid in other countries to either inform negotiations with the pharmaceutical industry or as a cap on market prices. We review the application of IRPs to cap the prices of negotiated outcome in the context of U.S. proposals to change the way prescription drug prices are established for the Medicare program. We examine the economic, political and administrative issues associated with the use of IRPs and we summarize the evidence on their impacts.
International Reference Prices (IRP), also called External Reference prices (ERP), are widely used across developed nations. IRPs use the prices paid in other countries to either inform negotiations with the pharmaceutical industry or as a cap on market prices. We review the application of IRPs to cap the prices of negotiated outcome in the context of U.S. proposals to change the way prescription drug prices are established for the Medicare program. We examine the economic, political and administrative issues associated with the use of IRPs and we summarize the evidence on their impacts.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1215/03616878-10041177
