The Role Of Value And Cost In Prescription Drug Pricing

Law360, New York (September 27, 2016, 12:36 PM EDT) -- In recent months, controversy about prescription drug prices has been in the headlines like no time since the passage of Medicare Part D. Outrage about high prices and large price increases has been directed at a wide swath of drug companies by members of Congress, candidates seeking office and many others. Some have defended pricing by suggesting that prices are set according to the value they provide to patients. Others counter that such pricing is unethical, particularly for critical/lifesaving medicines. To charge more because a product is more important to the life and well-being of a patient (a notion defined as value-based pricing) is questionable to many. Some argue that the more important the product, the cheaper and more accessible it should be....

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