As we continue to make remarkable strides to treat our most costly and challenging diseases, there is a renewed focus on ensuring patients have access to the most innovative medicines. Increasingly, biopharmaceutical companies are entering into value-based contracts with payers – such as payment models that link reimbursement to patient outcomes. By doing so, payers and biopharmaceutical companies are working together to control costs and provide patients access to new, life-saving treatments.
A recent AP story highlights a few examples that demonstrate how value-based arrangements can improve patient access by reducing payer risks. These innovative payment models are structured to provide a win-win for patients and health plans. Under these arrangements, health plans often provide better access to the newest treatments in exchange for better deals if the medicines fail to meet expectations. This focus on value and outcomes over volume offers significant benefits for both patients and the healthcare system alike. As the story notes, some stakeholders are optimistic that these innovative payment models are part of the solution to cost concerns.
The biopharmaceutical industry is committed to advancing public policy ideas that foster innovative ways to pay for medicines.
Read more about The Value Collaborative here.
Holly Campbell
Holly Campbell is former deputy vice president of public affairs at PhRMA focusing on the cost and value of medicines.
Holly Campbell
You won’t fix what you don’t value: Two reasons why traditional cost-effective analyses can perpetuate health inequities
PhRMA presents research at ISPOR 2022
Study finds nearly half of payers believe innovative contracts can lead to lower patient out-of-pocket costs
Growth in innovative, value-based contracts holds promise for the health system and for patients
ICYMI: Innovative payment models helping provide patient access to new medicines
The Value Collaborative
ICYMI: Innovative payment models helping provide patient access to new medicines
ICYMI: Innovative payment models helping provide patient access to new medicines