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Policy Strategies for Aligning Price and Value for Brand-Name Pharmaceuticals
Health Affairs Link to more items from this source
Mar. 16, 2018
"To achieve the difficult balance between necessary incentives for innovation and affordability, many economists favor 'value-based' pricing, in which the price for a new drug reflects an assessment of the comparative effectiveness of the drug compared to other available treatments. [This brief explores] the different varieties of value-based pricing, and [outlines] several measures through which drug competition may be increased, supported by regulatory steps and payment mechanisms to bring drug prices into greater alignment with their underlying clinical value."

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