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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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.

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
Biosimilars: Market Changes do not equal policy success
Numerous articles and reports have trumpeted biosimilar market growth, but it's critical we do not lose sight of the sole objective for creating the biosimilar market: to reduce the cost of older biologic drugs for society and taxpayers.
Drug Pricing Lab 03/15/2021
Bottom-Up Pricing Estimate for P-quad
How much would biologic drugs cost under P-quad pricing? Two approaches to estimating fully loaded costs plus a profit (10% and 20% examined) suggest net discounts from current prices would be at least 65% to 75%
Drug Pricing Lab 03/12/2021
Modeling P-quad
The Drug Pricing Lab engaged Milliman to conduct an independent analysis of the Production Plus Profit Pricing (P-quad) policy proposal. The Milliman analysis estimates the projected spending on U.S. biologic and biosimilar drugs under a referent scenario where there is no biosimilar entry or competition, the existing ‘status quo’ scenario under the current biosimilar environment, and the Drug Pricing Lab’s P-quad policy proposal. 

This report was commissioned by Drug Pricing Lab.
Milliman 03/12/2021
Ethics of Clinical Trials to Evaluate Biosimilars
Biosimilars require extensive, expensive, and time-consuming human testing prior to market entry, a process vastly different than generics. So why are we still doing them?
MedRx IV 03/09/2021
COVID-19 Reduced Average Life Expectancy of Americans by Five Days,…
The CDC made a mistake.
STAT 02/25/2021
Instead of debating 'first-shot' vs 'set-aside' vaccine approaches, hospitals' study…
Hospitals could start studies of their own employees to answer important questions, including whether the first-shot approach has downsides when compared to the set-aside strategy.
STAT 01/04/2021
After 4 Years of Trump, Medicare and Medicaid Badly Need…
Many promising ideas won't work as expected, and that's all the more reason for CMS to evaluate how medical care is delivered to its patients.
NYTimes 12/01/2020
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
We can't tackle the pandemic without figuring out which Covid-19…
There may be several Covid-19 vaccines by winter, but there will also need to be a study comparing the viruses to one another as part of rolling out widespread vaccination.
STAT 09/24/2020
CMS's Proposed Medicaid Best Price Loophole for Value-Based Purchasing of…
The administration has proposed a loophole in the Medicaid Best Price rules that would dismiss linking the drug's effectiveness to its price.
HA Blog 07/06/2020
The Science on Coronavirus is Topsy-Turvy. That's Fine.
Urgency demands patience, because advancement is always a product of missteps.
NYTimes 04/30/2020
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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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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