To address escalating drug costs, health care payers increasingly are adopting benefit designs that aim to identify and pay for medications based on their value.
Alexandria, Va., June 5, 2017 — To address escalating drug costs, health care payers increasingly are adopting benefit designs that aim to identify and pay for medications based on their value. The June issue of the Journal of Managed Care & Specialty Pharmacy (JMCP) features a special supplement comparing existing “value frameworks” used in such benefit designs to assess high-cost oncology treatments.
The five articles in the supplement, “Value-Based Framework Considerations for Managed Care Pharmacy,” raise important questions about these frameworks, including the core challenge of how to define value. JMCP is the official journal of the Academy of Managed Care Pharmacy.
The basic premise underlying value frameworks — i.e., that decisions about medical treatment can be improved by providing standardized comparisons of treatments’ benefits and costs — is generally accepted as valid. But for value frameworks to reach their full potential, some questions must be answered, such as:
Recent interest in value-based health care comes amid sharp rises in prescription drug spending. In 2015, for example, U.S. national health care expenditures grew 5.8% to $3.2 trillion, while prescription drug spending increased 9.0% to $324.6 billion.
“The research presented in this supplement makes clear that value frameworks themselves have positive value,” says JMCP Editor-in Chief Laura Happe. “At the same time, there are fundamental issues with value frameworks that make expectations of a panacea unrealistic. We should be hopeful about the promise of value frameworks, even as we continue to ask and try to answer these hard questions.”