NEW CLASSIFICATION OF TRADITIONAL AND INNOVATIVE PHARMACEUTICAL PAYMENT METHODS

Author(s)

Hermanowski T1, Czech M2, Chmielewska M3, Kiljan A3, Drozdowska A3, Zawodnik S3, Pashos CL41Department of Pharmacoeconomics, Medical University of Warsaw, Warsaw, Poland, 2Novo Nordisk Pharma Sp z.o.o., Warsaw, Poland, 3Sopharm Sp. z o.o., Jablonna, Poland, 4United BioSource Corporation, Lexington, MA, USA

OBJECTIVES: To suggest a new classification of different pharmaceutical payment methods and to analyze the implementation of those methods in different healthcare settings of IQ Partners’ Countries. This division will facilitate the comparative analysis of the impact of different payment methods on healthcare costs, efficiency, quality and equity. METHODS: Data on pharmaceutical payment methods were obtained through a review of the available literature. The search included relevant economic and medical databases, journals and books, conference materials and other projects. Different examples of payment methods were extracted from publications (95 positions) and classified. The implementation of those methods in different countries was also described. RESULTS: The practical classification of pharmaceutical payment methods was based on two main categories: traditional (well established and widely used) and innovative (implemented in recent years, depending on the country). A sub-classification was also outlined, related to the regulatory mechanisms of the methods in question: market driven, administrative regulations and market mechanisms with administrative settings (mixed). The traditional payment methods and schemes include: “free” prices, fixed prices, flexible prices, fixed budget, reference pricing, margins, rebate agreements, bonus agreements and patient’s co-payment. The innovative payment methods include price volume agreements, cross-product agreements, risk-sharing, value-based pricing, framework agreements, cost-plus pricing, patient access schemes, portfolio deals, one price per patient, disease management. The second group was subsequently introduced in selected countries, including UK and US with a trend to be used in others countries (e.g. Poland). CONCLUSIONS: Innovative payment methods allow risk-sharing both related to costs and outcomes creating an additional platform for a dialogue between authorities and producers.

Conference/Value in Health Info

2012-11, ISPOR Europe 2012, Berlin, Germany

Value in Health, Vol. 15, No. 7 (November 2012)

Code

PHP37

Topic

Health Policy & Regulatory

Topic Subcategory

Health Disparities & Equity, Pricing Policy & Schemes

Disease

Multiple Diseases

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