A bid to encourage ‘value-based’ drug pricing

Drug makers have long shied away value-based pricing arrangements — in which insurers pay for drugs only when they work. Their argument: Medicaid rules get in the way of these deals because of the way they force them to calculate the best price.

Now, as STAT's Nick Florko reports, the Trump administration has unveiled a proposal it thinks can encourage value-based pricing arrangements, anyway. The gist: Manufacturers would be able to calculate more than one “best-price.”

The proposal might not leave everyone happy. Independent Medicaid experts have previously argued existing rules don't prevent value-based pricing arrangements and changes could allow drug makers to game the system.

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