Rational approaches to drug pricing and insurance coverage

Americans rank lowering prescription drug prices as a top policy priority. We focus on developing rational approaches to drug pricing and reimbursement that sustain innovation while ensuring patient access and affordability.
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Research & Insights

We conduct non-partisan, independent research, and make our work accessible and informative to policymakers and the general audience alike. Browse our featured research or explore our work by article type.

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Featured Research
The Drugs at the Heart of Our Pricing Crisis
The US drug pricing system is broken, but not irreparable. For large-molecule biologic drugs, enter: Production Plus Profit Pricing (P-quad, pronounced like Ahab's seagoing vessel).
NYTimes 03/15/2021
Reports
Xeljanz, the FDA, and nine years of patient harm
Quantifying population-level adverse events in the near decade between when safety concerns were identified and FDA action
Drug Pricing Lab 05/31/2022
Reports
Atypical antipsychotics: Decades of use, unfathomable harms
Using attributable risk calculations to quantify how many premature deaths resulted from atypical antipsychotic use in the elderly
Drug Pricing Lab 05/31/2022
Reports
Medicare Part B Premium Dynamics Explained
The Drug Pricing Lab commissioned Milliman to prepare a report exploring the impact of changes in Medicare Part B program costs on beneficiaries’ premiums and Social Security payments. This report focuses on the 2022 Part B premium for beneficiaries with various income levels to illustrate the payment dynamics and discusses the implications for related programs.
Milliman 12/23/2021
Reports
Comparing Factors that Influence Pharmaceutical Pricing and Access in the…
Drug prices in the United States are some of the highest in the world, which has triggered several policy proposals aimed at adopting pricing strategies used by other countries.
Drug Pricing Lab 12/20/2021
Reports
Biosimilars in Medicare Part D: pricing dynamics and considerations
The Drug Pricing Lab engaged Milliman to prepare a report summarizing the pricing dynamics affecting utilization of biosimilars in the current Medicare Part D marketplace and under the proposed Part D benefit design in the Build Back Better Act.

This report was commissioned by the Drug Pricing Lab.
Milliman 12/14/2021
Reports
Evaluating Industry’s Drug Pricing Claims
A closer look at three of PhRMA’s most cited talking points.
Drug Pricing Lab 11/18/2021
Mapping conflict of interests: scoping review
A scoping review of the literature to identify all known ties between the medical product industry and the parties and activities in the healthcare ecosystem.
Drug Pricing Lab 11/03/2021
Reports
Production Plus Profit Pricing (P-quad) FAQ
08/17/2021
Academic Literature
What A Waste! The National Academy Of Medicine’s Report On…
Why Congress should not follow the National Academy of Science, Engineering, and Medicine’s recommendation to remove the JW modifier.
Health Affairs Blog 07/09/2021
Articles
Medicare Must Study Unproven, Expensive Alzheimer’s Drug
Medicare cannot indiscriminately cover the cost of Aduhelm for the treatment of Alzheimer's disease without first evaluating whether it truly works.
Bloomberg Opinion 06/15/2021
Academic Literature
Value-Based Management of Specialty Drugs: Practical Considerations and Implications for…
Not all approaches are suited to meeting policy makers and health plans’ goals of managing specialty drugs based on their value. Researchers conducted a qualitative study with Blue Cross Blue Shield plans interested in implementing value-based specialty pharmacy management to observe the plans’ objectives, strategies, and factors influencing their ability to execute on these strategies.
AJMC 05/13/2021
Articles
Trump's Drug-Pricing Ideas Would Cost Taxpayers a Bundle
Meanwhile, pharmaceutical companies would stand to make a lot more money.
Bloomberg Opinion 09/29/2020
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Featured News

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Drug Pricing Lab 09/01/2021

Senate Moves Forward with $1.2 trillion Infrastructure Bill, Includes Funding Offset from Bach’s Drug Vial Waste Research

The infrastructure bill includes a drug waste provision from the Recovering Excessive Funds for Unused and Needless Drugs (REFUND) Act, which requires manufacturers to rebate the amount wasted back to CMS. An estimated $3 billion over 10 years can be recouped and invested in roads, bridges, and other infrastructure initiatives.
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Drug Pricing Lab 04/09/2021

CMS Announces Delay of MCIT Final Rule

Drug Pricing Lab 03/15/2021

Curbing Biologic Drug Spending with P-quad

Bloomberg Opinion 07/16/2020

Before Spending Billions, U.S. Hospitals Need to Study Remdesivir Further

The Challenge

With new drugs entering the market at record-breaking prices and costly gene and cell therapies in the pipeline, access and affordability are pressing concerns. But the current healthcare system allows for, and even encourages, the rise.

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Who We Are

We are a non-partisan, independent research group with extensive interdisciplinary expertise in medicine, policy, economics, finance, and social science tackling this drug pricing challenge.

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Learn how drug pricing works

Certain aspects of the payment and reimbursement processes in the U.S. distort incentives and negatively influence drug prices. Learn how through our tutorials.

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Our Tools

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Drug Abacus

How would you price a drug? This interactive tool takes more than 50 cancer drugs and lets you compare the company's price to one based on "value."

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Policy Tracker

The DPL Policy Tracker keeps tabs on federal policy proposals to address US drug pricing issues.

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Louisiana Budget Allocator

There is no such thing as a free drug. The Louisiana Budget Allocator analyzes the budget impacts of paying for Hepatitis C treatment for Louisiana's Medicaid and uninsured recipients.

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