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Pharmaceutical Pricing, Reimbursement, and Prescribing News in the First Quarter of 2007
Decision Resources, Inc., May 2007, Pages: 23
In the first quarter of 2007, political intervention in drug pricing and reimbursement in the world’s major pharmaceutical markets greatly increased. In the United States, for example, a new Democratic majority in
Congress is intent on curbing the prices of branded medicines and facilitating the launch of generic drugs. In the United Kingdom, a complete overhaul of the country’s pricing and reimbursement system has been proposed. The goal in all major pharmaceutical markets is to cut health care costs, and the pharmaceutical industry is an easy target.
Questions Answered in This Spectrum Report:
- In January 2007, U.S. lawmakers proposed a series of bills to improve U.S. consumers’ access to low priced generic drugs, including bio generics. Which bills have been proposed, how much savings are they purported to offer, and what are their chances of being made into law?
- According to the Centers for Medicare and Medicaid Services, the Medicare Part D prescription drug benefit is saving beneficiaries an average of $1,200 per year. On January 12, 2007, in a further attempt to lower drug prices, the House of Representatives passed the Medicare Prescription Drug Price Negotiation Act of 2007, which would empower the Department of Health and Human Services to negotiate Medicare Part D drug prices. What is the Congressional Budget Office’s argument against this proposal?
- In February 2007, the United Kingdom’s Office of Fair Trading (OFT) published a highly critical review of the Pharmaceutical Price Regulation Scheme, which controls the level of profit companies may make on sales of branded prescription drugs to the National Health Service. What were the OFT’s criticisms, and what two options did the agency propose to better control prescription drug prices?
- The announcement, in March 2007, by Japan’s Ministry of Health, Labor, and Welfare that it is considering overhauling the national pricing and reimbursement system has galvanized the international pharmaceutical industry, which has long been critical of the system. What reforms is the Federation of Pharmaceutical Manufacturers’ Associations of Japan planning to propose?
Scope:
- First quarter news in 2007: major events in the pharmaceutical pricing, reimbursement, and prescribing environment in the United States, Europe (France, Germany, Italy, Spain, and the United Kingdom), and Japan.
- Cost-containment programs: legislation that has been proposed in the United States and elsewhere to reduce drug expenditures and make medication more affordable to patients.
- Outlook: our assessment of the implications of these events for the pharmaceutical industry in the major markets under study.
Also available
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