How Should Medicaid Pay For Cures? Sen. Grassley Likes Annuity Model
Finance Committee chairman wants a provision allowing Medicaid to make installment payments for high-cost curative treatments in drug pricing legislation. But Democrats worry such a model might encourage high prices.
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Senate Finance Committee's drug pricing bill would also exclude authorized generics from calculation of average manufacturer prices and rebates and authorize installment-type payments for curative gene therapies.
Policymakers should clarify link between high drug prices and innovation and figure out how to “rebalance” high prices with non-price innovation incentives before proceeding with policies aimed directly at lowering prices, Conti and David propose in the Health Affairs Blog.
Updated drug pricing bill would allow US FDA to approve generics even if innovator safety information is protected by exclusivity.