How Can We Control Pharmacy Prices?
In this discussion, review the approaches that different states are taking to control pharmacy prices., and you may use the summaries provided in the readings.
You also may use the Center for State Drug Pricing or other suitable data from current sources.
Using the economic concepts from the readings and previous discussions,
- Identify the two most promising strategies and explain why they are most likely to work.
- Identify the two strategies most likely to fail and explain the risks to success.
Learning Objectives
- Evaluate the market failures in health care pricing.
- Evaluate why the same service can be priced so differently by different providers in the same market.
- Examine the negative impact of price variation.
- Evaluate options for simplifying pricing and/or making it more equitable.
- Synthesize common errors about microeconomic assumptions in healthcare analysis.
Required Videos
- Start watching at 1:15:00 hours to 2:08:00: MA Health Policy Commission (2018). [Video file; 3:34:33 hours]. Retrieved from https://www.youtube.com/watch?v=e3MiD_gwnnc&t=9434s
2018 cost trends hearing — Day 1 — Morning session
2018 Cost Trends Hearing Day 1 Morning Session Transcript
https https://youtu.be/e3MiD_gwnnc://youtu.be/e3MiD_gwnnc
- Start watching at 00:39:06 to 1:56:00: MA Health Policy Commission (2018). [Video file 3:02:56 hours]. Retrieved from https://www.youtube.com/watch?v=2NdU_B9XwaI
2018 cost trends hearing — Day 2 — Morning
2018 Cost Trends Hearing — Day 2 — Morning Transcript
Required Resources
Read the following required resources to prepare for upcoming activities and gain more knowledge of module content.
- U.S. Healthcare Spending: International Context, National Trends, and Getting to High-Value Care (PDF). (2018). Harvard Global Health Institute. Retrieved from https://www.mass.gov/files/documents/2018/10/16/Ashish%20Jha.pdf
- Innovations to Enhance Timely Access to Primary and Behavioral Health Care (PDF). (2018). Massachusetts Health Policy Commission. Retrieved fromhttps://www.mass.gov/files/documents/2018/10/16/Panel%202%20Intro%20Slides.pdf
- Examination of Health Care Cost Trends and Cost Drivers (PDF). (2018). Office of Attorney General Maura Healey. Retrieved from https://www.mass.gov/files/documents/2018/10/17/AGO%20Presentation.pdf
- Spotlight on State Solutions to Health Care Spending (PDF). (2018). Massachusetts Health Policy Commission. Retrieved from https://www.mass.gov/files/documents/2018/10/17/Trish%20Riley.pdf
- Break up Big Tech? The senator’s plan has plenty of precedent. (2019). The Boston Globe.Retrieved September 13, 2019, from https://www.bostonglobe.com/business/2019/03/19/warren-crackdown-big-tech-has-history/2708TQ6XHsJb2IiPS2CVrO/story.html
- Anderson, G., & Herring, B. (2015). The All-Payer Rate Setting Model for Pricing Medical Services and Drugs. AMA Journal of Ethics, 17(8), 770–775. https://doi.org/10.1001/journalofethics.2015.17.8.pfor1-1508.
- Miller, H. D. (2009). From Volume To Value: Better Ways To Pay For Health Care. Health Affairs, 28(5), 1418–1428. https://doi.org/10.1377/hlthaff.28.5.1418
