IRP IS DEAD, LONG LIVE IRP- AN ANALYSIS OF RECENT IRP REFORMS AROUND THE WORLD
Author(s)
Lockwood C1, Chui C2, Genane C3, Rodrigues T2, Ando G2
1IHS Markit, Santa Clara, CA, USA, 2IHS Markit, London, UK, 3IHS Markit, Paris, France
OBJECTIVES: International reference pricing (IRP) has been used extensively to regulate pharmaceutical prices. It has been debated whether this policy sows the seeds of its own demise by incentivizing industry and payers to negotiate confidential concessions, prompting scholars to ask whether we will soon face the "end" of IRP. Within this context, the present study updates a 2014 analysis examining IRP policy changes around the world in order to ascertain whether there is any evidence that IRP is becoming less influential. METHODS: The study draws upon the same set of 38 countries in which in-depth qualitative interviews were completed with 50 stakeholders (37 payers/policymakers and 13 industry representatives) in 2014. It also expands that list to include 14 additional countries. A qualitative and semi-quantitative analysis of policy changes made throughout 2015 and 2016 was undertaken to identify trends in how IRP policy frameworks have evolved in recent years. RESULTS: A total of 12 discrete policy changes were observed across eight of the countries having introduced IRP before the end of 2014 (16%). Of these eight, six belong to the 22 countries (75%) making one or more such changes from time of IRP introduction through end of 2014. The most frequent changes involved modifications to the composition of the reference basket (71%) and frequency with which referencing is performed (43%). Changes to basket composition did not appear motivated by availability of net prices but rather of lower list prices. Three countries were found to have implemented IRP since the end of 2014. CONCLUSIONS: Despite recent debates over the end of IRP, it continues to represent a popular tool for regulation of drug prices, and there is currently no evidence of a declining influence - quite the opposite. Policymakers continue to adapt regulations to cope with some of the challenges engendered by this very policy framework.
Conference/Value in Health Info
2017-05, ISPOR 2017, Boston, MA, USA
Value in Health, Vol. 20, No. 5 (May 2017)
Code
PHP19
Topic
Health Policy & Regulatory
Topic Subcategory
Pricing Policy & Schemes
Disease
Multiple Diseases