Value-Based Contracts May Lower Patients' Out-of-Pocket Costs by 28 Percent

Monday, February 26, 2018 General News
Email Print This Page Comment bookmark
Font : A-A+

WASHINGTON, Feb. 26, 2018 /PRNewswire-USNewswire/ -- In the past two years, commercially insured patients in health plans

with value-based contracts for diabetes, high cholesterol and HIV medicines had copays that were, on average, 28 percent lower for those medicines compared to patients in other plans, according to a new analysis from the Pharmaceutical Research and
Manufacturers of America (PhRMA).

"Results-based or value-based contracts can reduce health care system costs and can make medicines more affordable and accessible for patients," said Stephen J. Ubl, president and CEO of PhRMA. "The health care market is starting to move in this direction, but we need public policy reforms that allow greater flexibility for innovative payment arrangements that lower out-of-pocket costs and enable patients to access the right treatments the first time."

The data also highlight the potential for results-based contracts to reduce health care costs. For example, if results-based contracts lower the burden of diabetes in the United States by five percent, the United States could save more than $12 billion annually. This data complements an earlier analysis by Avalere that found 33 percent of payers that used results-based contracts experienced cost savings and 38 percent saw improved patient outcomes.

Through value-based contracts, biopharmaceutical companies agree to take on more financial risk, which may ultimately result in insurers offering lower copays and coinsurance for patients.

While these innovative approaches to paying for medicines can improve patient affordability and access, many barriers limit the scale and scope of their impact. To foster more of these arrangements, we need updated rules that better facilitate the responsible and timely sharing of product information with insurance companies, clearer protection for value-based arrangements under the Anti-Kickback Statute and more certainty about how to address these arrangements under government price reporting rules like Medicaid best price. 

View the full analysis here.

About PhRMAThe Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $65.5 billion in 2016 alone.

Connect with PhRMAFor information on how innovative medicines save lives, please visit:  www.PhRMA.org  www.Innovation.org  www.GoBoldly.com www.Facebook.com/PhRMA  www.Twitter.com/PhRMA 

 

Cision View original content:http://www.prnewswire.com/news-releases/value-based-contracts-may-lower-patients-out-of-pocket-costs-by-28-percent-300603700.html

SOURCE Pharmaceutical Research and Manufacturers of America (PhRMA)



Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
* Your comment can be maximum of 2500 characters
I agree to the terms and conditions

News A - Z

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

News Search

Medindia Newsletters

Subscribe to our Free Newsletters!

Terms & Conditions and Privacy Policy.

Find a Doctor

Press Release Category

Press Release Archive

Stay Connected

  • Available on the Android Market
  • Available on the App Store