Payer Perspectives on Indication-based Pricing
Pharma argues that indication-based pricing would maximise the utility of products and allow wider patient access to essential medicines. Payers are not convinced. Beyond practical objections around the administrative burden such pricing models bring is the burning question: why should a drug’s price be different simply because of the disease it treats? How can pharma address payer concerns and where is their common ground? In this report payers speak plainly on the practical and commercial challenges they see for indication-based pricing.
Companies
Novartis, European Federation of Pharmaceutical Industries, Office of Health Economics
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- Lack of pricing flexibility
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- Indication-based pricing is possible but limited
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- Different models for indication-based pricing
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- Benefits of indication-based pricing
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- Barriers to indication-based pricing
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- Lack of consensus on indication-based pricing
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- Enablers to more widespread use of indication-based pricing
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