What is Required to Evaluate the Impact of Pharmaceutical Reference Pricing?
AbstractObjective: To describe empirical studies evaluating the impact of reference pricing (RP) interventions in pharmaceutical markets in order to discuss the requirements for these evaluations. Methods: Ten studies were included in this review. For each study, the nature of the intervention, the nature of the data available, the nature of the question to be answered and the requirements of the evaluation method were examined through a questionnaire. The most frequently used evaluation method was the conventional before-after estimator, and only three studies used the difference-in-differences method. Results: Nine studies evaluated a therapeutic RP system and one evaluated a generic RP system. All of the papers reported how the reference price level was established, but only one study directly reported the updating frequency and criteria of the RP system. In four studies, details of simultaneous interventions were not reported. There is no paper providing evidence on overall social welfare impact. Four papers estimated the impact of intervention on the consumer price of drugs covered by the RP system. Only one provided information about the impact on the price of related drugs not covered by the system. Three studies included an outcome variable for the use of health services. The impact of RP intervention on the level of competition in the market for those medicines covered by the system was reported in only three of ten papers. Discussion/conclusion: Despite the rigorous effort made to evaluate the impact of RP policies in some countries, several limitations may affect both their internal validity (the nature of the data available, statistical problems common to non-experimental data, etc.) and their external validity (heterogeneity in the nature of the intervention).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer Healthcare | Adis in its journal Applied Health Economics and Health Policy.
Volume (Year): 4 (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://healtheconomics.adisonline.com/
Find related papers by JEL classification:
- C - Mathematical and Quantitative Methods
- D - Microeconomics
- I - Health, Education, and Welfare
- Z - Other Special Topics
- I1 - Health, Education, and Welfare - - Health
- I19 - Health, Education, and Welfare - - Health - - - Other
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Garattini, Livio & Cornago, Dante & De Compadri, Paola, 2007. "Pricing and reimbursement of in-patent drugs in seven European countries: A comparative analysis," Health Policy, Elsevier, Elsevier, vol. 82(3), pages 330-339, August.
- Tom Stargardt, 2010. "The impact of reference pricing on switching behaviour and healthcare utilisation: the case of statins in Germany," The European Journal of Health Economics, Springer, Springer, vol. 11(3), pages 267-277, June.
- Jaume Puig, 2005. "The impact of generic reference pricing interventions in the statin market," Economics Working Papers 906, Department of Economics and Business, Universitat Pompeu Fabra.
- Puig-Junoy, Jaume, 2007. "The impact of generic reference pricing interventions in the statin market," Health Policy, Elsevier, Elsevier, vol. 84(1), pages 14-29, November.
- Jaume Puig, 2005. "The impact of generic reference pricing interventions in the statin market," Working Papers, Research Center on Health and Economics, Department of Economics and Business, Universitat Pompeu Fabra 906, Department of Economics and Business, Universitat Pompeu Fabra.
- Kurt R. Brekke & Astrid L. Grasdal & Tor Helge Holmås, 2007.
"Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?,"
CESifo Working Paper Series
2059, CESifo Group Munich.
- Brekke, Kurt R. & Grasdal, Astrid L. & Holms, Tor Helge, 2009. "Regulation and pricing of pharmaceuticals: Reference pricing or price cap regulation?," European Economic Review, Elsevier, Elsevier, vol. 53(2), pages 170-185, February.
- Brekke, Kurt R. & Grasdal, Astrid L. & Holmås, Tor Helge, 2006. "Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?," Working Papers in Economics, University of Bergen, Department of Economics 14/06, University of Bergen, Department of Economics.
- Boris Augurzky & Silja Göhlmann & Stefan Gre� & Jürgen Wasem, 2009. "Effects of the German reference drug program on ex-factory prices of prescription drugs: a panel data approach," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 421-436.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dave Dustin).
If references are entirely missing, you can add them using this form.