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Morning Briefing

Summaries of health policy coverage from major news organizations

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Wednesday, Aug 12 2020

Full Issue

Perspectives: Foreign Price Controls; US Drug Pricing; Medicaid Best Price Rule

Read recent commentaries about drug-cost issues.

As America continues to dig its way out of the economic and public health impacts of the coronavirus pandemic, the Trump administration and state and local governments have waived or suspended hundreds of regulations.聽These combined efforts have given American families, businesses and public agencies the flexibility and breathing room needed to combat the disease and the economic downturn, and many of these deregulatory efforts should be here to stay. They include several positive steps in the health care space, including increased flexibility for telehealth and loosening of restrictions for health professionals practicing across state lines. (Adam Brandon and Tom Schatz, 8/10)

After a rare few months of positive press owing to their work on coronavirus treatments, pharma companies are nearing a fork in the road. On the left, there鈥檚 the windfall and prestige that will come with a first-to-market vaccine. On the right, there鈥檚 the furor that will ensue should these drugs be priced at a level perceived to be excessive. Clearly the industry would like to have it both ways 鈥 to reap the rewards in terms of reputation and remuneration without leaving too much on the table. There鈥檚 likely only one way for companies to toe this line: by laying out the multitude of factors that will go into pricing any such drug, and doing so with a degree of transparency they鈥檝e usually avoided. (Alison Kanski, 8/5)

For well over a decade policymakers have declared the healthcare system is moving towards value-based pricing of services and technologies. However, the movement from volume- to a value-based system of pricing has occurred at a snail鈥檚 pace, especially in the pharmaceutical sector. Numerous barriers have prevented value-based pricing from being implemented. Now, one of those barriers, namely Medicaid鈥檚 鈥渂est price鈥 rule, may change, to accommodate value-based pricing arrangements. (Joshua Cohen, 8/9)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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