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Pharmaceutical Pricing and Reimbursement in France, 2008
Decision Resources, Inc., June 2008, Pages: 45
Introduction
France invests heavily in maintaining its outstanding universal healthcare system. However, drug prices in France—already among the lowest in Europe are declining as a result of tough cost-containment measures targeted primarily at pharmaceutical companies. The government may have to pursue more radical reform in the future, and the pharmaceutical industry will have to adapt to a market that places growing emphasis on the costeffectiveness of treatments.
Get the Answers You Need to Shape Your Strategy
- The French pharmaceutical market offers many attractions for drug manufacturers, but the country’s 2008 budget limits the growth rate for pharmaceutical costs to just 1.4%. What steps does the government plan take to maintain the country’s healthcare system? What challenges does the government face as it struggles to curb escalating national healthcare expenditures? How will the government encourage the use of generics?
- The standard procedure for setting reimbursement prices in France begins with pricing analyses conducted by three governing bodies. How do these agencies determine a drug’s reimbursement rate? What recourse does the manufacturer have to challenge a given rate? What plans does France’s Ministry of Health have for increasing the independence and scientifi c credibility of the decision-making process?
- The French government has introduced several reforms to stimulate greater use of generics. What is the French government doing to encourage physicians to overcome their bias toward branded drugs? What type of pricing restrictions are in place to promote generics substitution? How does the country’s generics erosion rate compare with more mature generics markets?
Scope
- How France funds its healthcare system: statutory health insurance system; employment-related levies and taxes; government-run insurance for individuals in other categories; privately paid complementary health insurance.
- Cost-containment measures: sales growth limits; price cuts; reference pricing; taxation; prescribing restrictions; physician prescribing audits; medical control strategy; patient copayments; reimbursement restrictions for drugs of limited effectiveness; promotion of use of generic drugs.
- Pricing and reimbursement of drugs: social security system covers drugs dispensed in public hospitals; “global budget” allocated to public hospitals; private hospitals receive activity-based payment; national frame of reference for the good use of expensive and innovative drugs; price setting for innovative drugs; admission to reimbursement; renewal of pricing and reimbursement.
- Health technology assessment (HTA): HTA authorities in France, the United Kingdom, and Germany work together to exchange research results.
- Outlook for the French pharmaceutical market: advantages and challenges for research-based manufacturers in France; overhaul of national healthcare system expected to be announced in 2008.
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