Abstract
Private Sector Strategies to Address High Drug Prices and the Promise of Reference Pricing Programs
Highlights
It can take time for employees to respond to market forces, and employers must recognize that the transition could be difficult for some
Some patients may not be able to switch to the lower-price medications based on clinical grounds and may face a significant financial burden in a reference pricing situation
Employers may be willing to accept this outcome, given the savings opportunities, but it could be mitigated by so-called good soldier provisions that allow beneficiaries who try the lowerprice drug without success to access the higher-price medication without facing the reference pricing charge.[5]
Summary
The results found by Robinson et al[1] demonstrate the potential of private action, but there are a few important issues to consider. In the period immediately after implementation, employee cost sharing increased considerably.
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