Reports from Georgia State University Highlight Recent Findings in Managed Care (The Challenge of Paying for Cost-Effective Cures)

Insurance Weekly News

By a News Reporter-Staff News Editor at Insurance Weekly News -- Investigators discuss new findings in Managed Care. According to news reporting originating from Atlanta, Georgia, by VerticalNews correspondents, research stated, "In this article, we consider the problem of financing highly effective and cost-effective prescription drugs within a value-based pricing system. Precisely because these drugs are highly effective, their value-based prices may be quite expensive; and moreover, the value-based price of a cure ought to be set high enough to create incentives for innovation, otherwise these beneficial therapies may be underdeveloped."

Our news editors obtained a quote from the research from Georgia State University, "However, in our fragmented health insurance system, where patients move frequently between payers, these payers generally lack the incentives to pay value-based prices for cures because they cannot ensure that they will reap the long-term economic benefits. Therefore, we argue that there is a need for mechanisms to spread the burden of financing of cures across payers to maximize patient access and the public good."

According to the news editors, the research concluded: "We suggest that risk adjustment, reinsurance, and risk corridors are familiar policy options that merit consideration to address the problem and create incentives for value-based pricing."

For more information on this research see: The Challenge of Paying for Cost-Effective Cures. American Journal of Managed Care, 2017;23(1):62-64. American Journal of Managed Care can be contacted at: Managed Care & Healthcare Communications Llc, 666 Plainsboro Rd, Ste 300, Plainsboro, NJ 08536, USA.

The news editors report that additional information may be obtained by contacting E.C.F. Brown, Georgia State University, Coll Law, Atlanta, GA 30303, United States.