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Pharmaceutical Policy and Pricing: Are Other Countries Getting Greater Value?

Monday, November 07, 2011

Spending on prescription drugs in the U.S. rose at a faster clip in 2009 than spending for hospital and physician care, a trend that is expected to continue through 2020. By some estimates, prescription drugs account for 15 cents of every health care dollar spent. Thus, federal and state budget cutters – as well as private health plans and hospitals – have a keen interest in restraining drug costs.

The desire to get a handle on drug spending is a focus in other countries as well. What are some strategies used in other countries to control pharmaceutical spending? How is comparative effectiveness research used in making drug coverage decisions? What is the impact of intellectual property law, and what happens when“blockbuster drugs” go off- patent and generics become available? How are value-based models being used by insurers and others to influence pharmaceutical utilization and health outcomes? How do the public and private sectors in the United States seek to contain pharmaceutical spending?

To address these and related questions, the Alliance for Health Reform and The Commonwealth Fund are sponsored a November 7 luncheon briefing. Panelists were: Sir Andrew Dillon, CEO of the National Institute for Health and Clinical Excellence (NICE) in England; Rainer Hess, chairman of Gemeinsamer Bundesausschuss/Federal Joint Committee in Germany; Jean-Luc Harousseau, M.D., chair haute of the Authorité de Santé (HAS)/ National Authority for Health in France; and Ian Spatz of Manatt, Phelps & Phillips, LLP, and Manatt Health Solutions, U.S. Ed Howard of the Alliance and Robin Osborn of Commonwealth moderated. This briefing shed light on how the U.K., Germany and France set national pharmaceutical policies and what lessons learned in those countries may be applicable to the United States.


 Robin Osborn, The Commonwealth Fund, Moderator
 Sir Andrew Dillon, National Institute for Health and Clinical Excellence, Speaker
 Rainer Hess, Federal Joint Committee, Speaker
 Jean-Luc Harousseau, National Authority for Health in France, Speaker
 Ian Spatz, Manatt, Phelps & Phillips, LLP, Speaker
(Click on the camera icon to see a video of the speaker's presentation.)

Transcript, Event Summary and/or Webcast and Podcast

Transcript: Transcript (Adobe Acrobat PDF), 11/7/2011
Event Summary: Event Summary (Adobe Acrobat PDF), 11/7/2011
Full Webcast/Podcast: Pharmaceutical Policy and Pricing: Are Other Countries Getting Greater Value?

The full webcast and podcast for this briefing, as well as videos of individual speakers' presentations, are provided by Kaiser Family Foundation.

Speaker Presentations

Spatz Presentation (PowerPoint), 11/7/2011
Hess Presentation (PowerPoint), 11/7/2011
Dillon Presentation (PowerPoint), 11/7/2011
Harousseau Presentation (PowerPoint), 11/7/2011

(If you want to download one or more slides from these presentations, contact us at info@allhealth or click here for instructions.)

Source Materials

Materials List (Adobe Acrobat PDF), Alliance for Health Reform, 11/7/2011
Source List (Adobe Acrobat PDF), Alliance for Health Reform, 11/7/2011
Agenda (Adobe Acrobat PDF), Alliance for Health Reform, 11/7/2011
Speaker Bios (Adobe Acrobat PDF), Alliance for Health Reform, 11/7/2011
Event Summary (Adobe Acrobat PDF), , 11/7/2011

Offsite Materials (briefing documents saved on other websites)

U.S. drug spending slows; hits $307 bln in 2010: report, Reuters, 4/19/2011
- Berkrot, Bill
Seniors Feeling the Squeeze: Rising Drug Prices and the Part D Program, American Enterprise Institute, 3/17/2010
- Calfee, John E.
The World Medicines Situation 2011, World Health Organization, 1/1/2011
- Lu, Ye, et al.
At Pitney Bowes, Value-Based Insurance Design Cut Copayments and Increased Drug Adherence, The Commonwealth Fund, 11/2/2010
- Choudhry, Niteesh K., et al.
US Pharmaceutical Policy In A Global Marketplace (Adobe Acrobat PDF),Health Affairs, 12/16/2008
- Lakdawalla, Darius N., et al.
Comparative Effectiveness Review Within the U.K.’s National Institute for Health and Clinical Experience (Adobe Acrobat PDF),The Commonwealth Fund, 7/1/2009
- Chalkidou, Kalipso
Projecting future drug expenditures – 2009, American Journal of Health-System Pharmacy, 2/1/2009
- Hoffman, James M., et al.
Drug program saves state millions – but more can be done, The Olympian, 11/1/2011
Ending drug companies’ pay-for-delay deals, The Washington Post, 10/24/2011
Descriptions of Health Care Systems: England, France, and Germany, The Commonwealth Fund, 12/31/2011
- Thomson, Sarah
Multinational Comparisons of Health Systems Data, 2011, The Commonwealth Fund, 12/31/2011
- Squires, David
Prescription Drug Accessibility and Affordability in the United States and Abroad (Adobe Acrobat PDF),The Commonwealth Fund, 6/1/2010
- Morgan, Steve and Jae Kennedy
National Authority for Health: France, The Commonwealth Fund, 7/31/2009
- Rochaix, Lise and Bertrand Xerri
Institute for Quality and Efficiency in Health Care: Germany (Adobe Acrobat PDF),The Commonwealth Fund, 7/1/2009
- Nasser, Mona and Peter Sawicki
The National Institute for Health and Clinical Excellence (NICE), 2011, The National Institute for Health and Clinical Excellence, 12/31/2011
- Rawlins, Michael
National Authority for Health: France, The Commonwealth Fund, 7/1/2009
Prescription Drug Trends (Adobe Acrobat PDF),Kaiser Family Foundation, 5/31/2011
Lower-Than-Expected Medicare Drug Costs Reflect Decline in Overall Drug Spending and Lower Enrollment, Not Private Plans, Center on Budget and Policy Priorities, 5/6/2011
- Park, Edwin
Consumer groups: Obama more generous to Big Pharma in trade talks, Healthwatch, 10/24/2011
- Pecquet, Julian


Sir Andrew Dillon of the UK's National Institute for Health and Clinical Excellence describes how NICE evaluates drugs and determines their cost effectiveness. From the Nov. 7 briefing cosponsored by The Commonwealth Fund. (11 min.)


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