from tHEORetically Speaking: The HealthEconomics.Com Blog at http://bit.ly/2xLtBVU on September 29, 2017 at 03:45PM
The National Pharmaceutical Council and Precision Health Economics released in August a study on the common long-run average cost of a drug.
“Branded drug prices might overstate the true long-run cost of pharmaceuticals by 40% to 75%, accounting for generic price reductions and medical cost offsets. To ensure that all drugs providing long-run value end up entering the marketplace, market access and other policy decisions should consider the full range of long-term costs—and not just prices—at a particular point in time.”
The study used Medicare Expenditure Panel Survey data from 1996 through 2013.