Pharmaceutical costs

A huge shift is predicted in the ratio of doctor bills to pharmaceutical costs, from the current ratio of about 9 to 1 to a ratio of 1 to 1 in the next 25 years [12],... 

In the analysis of health care the price of care is often confused with the level of expenditure, particularly so in the analysis of the cost of pharmaceuticals. Pharmaceutical cost containment should never be the exclusive goal of public policies emphasis on costs without paying attention to the value of the products may lead to inefficient policies. The value of a new pharmaceutical resides in its ability to improve health, not just in its contribution to the decrease or increase of health care costs. Increased spending on health care and pharmaceuticals is therefore compatible with a reduction in their price, if the resulting value increases more than the expenditure. 

Finland None. A choice is made between a prior annual payment, a co-payment, and a co-payment with a maximum in the user-shared bill for the annual cost. Varies according to the municipality Maximum payment levels for (daily) hospital stays and for specialist visits Percentage rates of user sharing in pharmaceutical costs... 

In general, the results confirm the short-term nature of the pharmaceutical cost containment strategy. The trend followed by spending in the long term effectively shows a return to the initial levels prior to the measures. 

See also Hernandez s controversial article,36 with its strong criticism of the pharmaceutical cost containment policy adopted in Spain. 

Soumerai, S., et al., "Determinants of Change in Medicaid Pharmaceutical Cost Sharing Does the Evidence Affect Policy " Milbank Q., 75, 11-34 (1997). 

Pharmaceutical cost-effectiveness pricing developing and protecting a global ideal form... 

Another mechanism used to effect this global assault on pharmaceutical cost-effectiveness pricing may be bilateral trade agreements. The AUSFTA, which entered into force on January 1, 2005, was notable here because it was the first such bilateral FTA to include provisions directly targeting the pharmaceutical cost-effectiveness reimbursement pricing mechanism of another nation (Faunce et al. 2005). 

The U.S. Trade Act 1972 required AUSFTA negotiators to facilitate the "elimination of government measures such as price controls and reference pricing which deny full market access for United States [pharmaceutical] products" (USC 2002, 107-210 2102 b.8.D). Official comments supported the position that the AUSFTA would make Australian consumers pay more for the R D costs of U.S. pharmaceuticals and set a precedent for "eliminating" a pharmaceutical cost-effectiveness pricing system (Shiner 2004). 

Australian Trade Minister and U.S. Trade Ambassador Chapter 17 (Intellectual Property Rights) and Chapter 21 (Dispute Resolution Procedures) (Faunce 2005c). All of these in different ways have the capacity to impact on pharmaceutical cost-effectiveness pricing (Faunce et al. 2005). Chief amongst them, however, is Annex 2C. 

Reflections on developing an ideal pharmaceutical cost-effectiveness pricing system... 

Those wishing to protect and enhance pharmaceutical cost-effectiveness evaluation in the face of the challenges outlined above are hindered by the lack of academic and regulatory attention hitherto paid to developing a definitive gold standard. Some... 

Noncompliance with Medication Regimens An Economic Tragedy. Emerging Issues in Pharmaceutical Cost Containing National Pharmaceutical Council Washington, DC, 1992 1-16. 

The physician payment model is not perfect however, it represents a quantum leap forward compared to how pharmacy practitioners are reimbursed. The reimbursement in many Medicare 4- Choice plans, in most state Medicaid programs, and private PBM (third party) arrangements fads to recognize that the costs for providing the pharmacy benefit changes at the practitioner level. PBMs only recognize that the pharmaceutical cost changes. 

Pharmacy eligibility—Not all medical benefits include coverage of pharmaceuticals. The mem-ber/patient information must be checked against a list of individuals eligible for a pharmacy benefit (e.g., currently medicare beneficiaries do not receive a pharmacy benefit thus, no assistance is offered in the coverage of pharmaceutical costs). 

A. Moscho et ah. Pharmaceuticals cost reductions through cooperation, McKinsey Health 2003, 2, 20-28. 

As pharmaceutical cost containment strategies touch upon the interests of many groups (industry, wholesalers, retailers, consumers, doctors, etc.), reactions sometimes amounting to forceful opposition are to be expected when such policies are proposed or implemented. Sometimes these reactions are based on misunderstandings which need to be countered with sound information. Fears as to the failure or possible adverse effects of a cost containment programme can for example often be allayed if it can be shown that similar measures have been successfully implemented, without doing harm, earlier in another country in a situation similar to one s own. 

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