Re:Is it time to nationalise the pharmaceutical industry?
by s1artibartfast on Thursday March 05, 2020 @03:21PM
(#22497720)
Agreed. Outcome based pricing is a pretty easy step in the right direction and helps to aligns the stakeholders.The drug company only gets paid if the patients get the desired outcome.
The current system is completely bonkers. Insurance company profits are capped at a fixed percent, so they want to drive costs as high as possible. Pharma Benefit managers get paid by insurance based on list prices, so they also want to maximize price. Lastly, the manufacturer gets paid by PBMs based on list price minus kickbacks, and obviously wants to turn a profit
The current system is completely bonkers. Insurance company profits are capped at a fixed percent, so they want to drive costs as high as possible. Pharma Benefit managers get paid by insurance based on list prices, so they also want to maximize price. Lastly, the manufacturer gets paid by PBMs based on list price minus kickbacks, and obviously wants to turn a profit