Pharmaceutical Pricing Policies in a Global Market

image of Pharmaceutical Pricing Policies in a Global Market

Pharmaceutical policy making raises particular challenges in reconciling key objectives for health policy, such as ensuring affordable access to the latest effective drugs, with other important policy considerations, such as providing support to a valuable national industry. Unusually among health policy issues, it also raises international considerations that further complicate decision making, particularly as the nature and extent of such considerations are not well understood.

This report assesses how pharmaceutical pricing and reimbursement policies have contributed to the achievement of certain health policy objectives. It examines the national and transnational effects of these policies, in particular, their implications for the availability of medicines in other countries, the prices of these medicines, and innovation in the pharmaceutical sector.

This publication presents an analysis of comparative price levels, making use of a unique dataset to construct the most comprehensive pan-OECD pharmaceutical price index to date. It also draws upon original case studies of pharmaceutical pricing and reimbursement policies in six OECD countries to provide specific examples of the impacts of policies on health system performance.

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The Impact of Pharmaceutical Pricing Policies on Performance in Meeting Health Policy Goals

This chapter reviews OECD countries’ efforts to achieve prompt access to, and appropriate use of, effective medicines, to control pharmaceutical expenditure and to increase value for money in public pharmaceutical expenditures. It begins with an assessment of the role of pharmaceutical pricing and reimbursement policies in promoting public health. Analysis of the impact of pricing and reimbursement policies on pharmaceutical price levels follows. In the subsequent section, the means by which these policies are used to contain costs is examined. The final section looks at how successful pharmaceutical pricing and reimbursement policies are in getting good value for money in pharmaceutical spending

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