There has been a lot of recent discussion around the use of value-based drug pricing, especially for brand name drugs. Andy Slavit recently said controlling drug pricing would be one of the most important tasks before CMS in the next 5 years. However, any value equation involves cost and there is some disagreement about the appropriate cost to use in these equations. Would it be more appropriate to use the price net of rebates, discounts and charge backs (even though we cannot calculate this on a per drug basis)? Further, how we determine "value" is difficult- Peter Bach has designed the "Drug Abacus tool" for policymakers and others to experiment with altering the influence of different parameters on the ultimate value, which demonstrates how dramatically value can change. To our experts, who do you think will ultimately be responsible for determining value? And when do you think this will realistically be implemented?
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