60 Years after Kefauver: Household income required to buy prescription drugs in the United States and abroad

Mattingly, T. Joseph; Seo, Dominique; Ostrovsky, Adam M.; Vanness, David J.; Conti, Rena M.

doi:10.1016/j.sapharm.2020.11.007

Cited by 4 publications

(2 citation statements)

References 15 publications

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“…A small number of more-recent studies directly compares U.S. to other countries' drug prices-for example, Mattingly et al, 2021, andKang et al, 2021. 30 These studies cover a relatively small number of drugs (20 brand and 20 generic drugs in Mattingly et al, 2021, and 79 top drugs by spending in Kang et al, 2021) and use prices from a relatively small set of countries (ten OECD countries in Mattingly et al, 2021, and Canada, Japan, and the United Kingdom in 27 Mulcahy et al, 2021b.…”

Section: Prior Researchmentioning

confidence: 99%

International Prescription Drug Price Comparisons: Estimates Using 2022 Data

2024

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The current report, like the prior version, compares prices for different categories of drug products, including brand-name originator drugs, unbranded generic drugs, biologics, and nonbiologic drugs. This report adds new analyses on biosimilar price comparisons and on changes in price comparison findings over time. This research was funded by the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation under Contract No. HHSP23320095649WC-TO38, and the update was funded under Contract No. HHSP233201500038I and carried out within the Payment, Cost, and Coverage Program in RAND Health Care.RAND Health Care, a division of the RAND Corporation, promotes healthier societies by improving health care systems in the United States and other countries. We do this by providing health care decisionmakers, practitioners, and consumers with actionable, rigorous, objective evidence to support their most complex decisions. For more information, see www.rand.org/health-care, or contact

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Section: Prior Researchmentioning

confidence: 99%

International Prescription Drug Price Comparisons: Estimates Using 2022 Data

2024

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“…The US government has been considering measures to moderate the price of pharmaceutical products since the late 1950s when Senator Estes Kefauver convened Senate hearings on monopolistic practices in the pharmaceutical industry (Kefauver and Till 1965, Greene and Podolsky 2012, Mattingly, Seo et al 2021. Sixty years after passage of the Kefauver-Harris Amendments to the Federal Food, Drug, and Cosmetic Act, which established the modern drug approval process, and amidst continuing public concern about high drug prices (Mattingly, Seo et al 2021, Congress passed the Inflation Reduction Act (IRA)…”

Section: Introductionmentioning

confidence: 99%

Considering Returns on Federal Investment in the Negotiated “Maximum Fair Price” of Drugs Under the Inflation Reduction Act: an Analysis

Zhou,

Chaves da Silva,

Quijada

et al. 2024

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The Inflation Reduction Act (IRA) of 2022 contained landmark provisions authorizing government to negotiate a “maximum fair price” for selected Medicare Part D drugs considering the manufacturer’s research and development costs, federal support for discovery and development, the extent to which the drugs address unmet medical needs, and other factors. This working paper describes federal investment in the discovery and development of the ten drugs selected for price negotiation in the first year of the IRA as well as the health value created through Medicare Part D spending on these drugs. We identified $11.7 billion in NIH funding for basic or applied research leading to approval of these drugs with median investment costs of $895.4 million/drug. This early public investment provided a median cost savings to industry of $1,485 million/drug, comparable to reported levels of investment by industry. From 2017-2021, Medicare Part D spent $126.4 billion (median $10.7 billion) for these products before rebates. Excluding two products for diabetes, Medicare Part D spending was $97.4 billion and the total health value created was 650,940 QALYs or $67.7 billion (WTP/QALY=$104K) representing a negative residual health value of -$29.7 billion (before rebates). We argue that a negotiated fair price should provide returns on both private and public investments in these products commensurate with the scale and risk of these investments, with the principal return on public sector investments being the residual health value (net price) accruing to those using the product. These empirical data provide a cost basis for negotiating a fair price that rewards early government investments in innovation and provides social value for the public.

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International Reference Pricing in the Context of US Drug Policy

Frank

Conti

Gruber

2022

Journal of Health Politics, Policy and Law

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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.

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60 Years after Kefauver: Household income required to buy prescription drugs in the United States and abroad

Cited by 4 publications

References 15 publications

International Prescription Drug Price Comparisons: Estimates Using 2022 Data

International Prescription Drug Price Comparisons: Estimates Using 2022 Data

Considering Returns on Federal Investment in the Negotiated “Maximum Fair Price” of Drugs Under the Inflation Reduction Act: an Analysis

International Reference Pricing in the Context of US Drug Policy

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