Opinion: STAT+: Value-based drug pricing: When does it work best?

Value-based drug pricing offers an important way to bring down the high cost of drugs in the United States.

In this approach, a drug’s price is tied to demonstrated effectiveness and benefit on patient outcomes. Results-based pricing is built into contracts between pharmaceutical manufacturers, health care payers, and health care providers. The more effective a drug, the higher the target price payers submit, with discounts and rebates given for drugs that are less effective than expected.

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