Drug licenses: a new model for pharmaceutical pricing

Health Aff (Millwood). 2008 Jan-Feb;27(1):122-9. doi: 10.1377/hlthaff.27.1.122.

Abstract

High drug prices are a major barrier to patients' access to drugs and compliance with treatment. Yet low drug prices are often argued to provide inadequate incentives for innovation. We propose a drug-licensing model for health care, which has the promise of increasing drug use without altering patients' out-of-pocket spending, health plans' costs, or drug companies' profits. In such a model, people would purchase annual drug licenses that would guarantee unfettered access to a clinically optimal number of prescriptions over the course of a year. Using the example of statins, we illustrate how such a model could be implemented.

Publication types

  • Research Support, N.I.H., Extramural
  • Research Support, Non-U.S. Gov't

MeSH terms

  • Drug Industry / legislation & jurisprudence
  • Health Services Accessibility / economics
  • Health Services Accessibility / legislation & jurisprudence*
  • Humans
  • Hydroxymethylglutaryl-CoA Reductase Inhibitors / economics
  • Hydroxymethylglutaryl-CoA Reductase Inhibitors / supply & distribution
  • Insurance, Pharmaceutical Services
  • Licensure / legislation & jurisprudence*
  • Models, Economic*
  • Prescription Fees / legislation & jurisprudence*
  • United States

Substances

  • Hydroxymethylglutaryl-CoA Reductase Inhibitors