Harvard Pilgrim, Eli Lilly CEOs Promote Value-Based Pricing

from tHEORetically Speaking: The HealthEconomics.Com Blog at http://bit.ly/2ro5JlL on June 16, 2017 at 04:19PM

Two CEOs at the AHIP Institute and Expo 2017 conference focused on more affordable pharmaceuticals during a keynote presentation.

Harvard Pilgrim President and CEO Eric Schultz and Eli Lilly Chairman, President and CEO David Ricks talked about ways to shift pricing strategies to a more value-based solution.

“Now is the time for collaboration and innovation,” Ricks said. “(The United States spends) 18 percent of GDP on health care. EpiPen, Valeant … we get painted with that brush; that’s not helping us — it isn’t even our model. We would like that to go away.”

Schultz said value-based pricing is a move in the right direction, but added that savings tend to be more noticeable in high-priced drugs.

“[Savings are] very modest, but I do believe there’s an opportunity down the road,” Schultz said. “But right now, it’s about clinical outcomes.”

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