[Ip-health] analysis of Trump International Pricing Index proposal

Ed Silverman pharmalot at gmail.com
Mon Nov 5 17:49:20 PST 2018

didn't know public citizen gave exclusives or is it my fault for missing

On Mon, Nov 5, 2018 at 7:55 PM Steven Knievel <sknievel at citizen.org> wrote:

> Hello -
> I wanted to share with all of you Public Citizen's analysis on how the
> Trump Administration International Price Index Model for Medicare Part B
> Drugs calculates "Target Prices".
> https://citizen.org/sites/default/files/public-citizen-analysis-trump-international-price-index-calculation.pdf
> President Trump's rhetoric and much of the reporting about the proposal
> have framed it as reference pricing, but the mechanism they've laid out is
> quite a bit different than international reference pricing as commonly
> understood.
> As policymakers and advocates consider this proposal, it will be important
> to understand how it differs from international reference pricing as
> practiced in other countries throughout the world.
> Here's Politico's blurb about our analysis that was in their Prescription
> Pulse newsletter this morning:
> IS TRUMP'S PART B PLAN REFERENCE PRICING? - Not really, according to a new
> analysis from Public Citizen, shared first with Prescription PULSE. That's
> because the focus of the reimbursement pilot is to reduce spending on
> physician-administered drugs by 30 percent, and the administration (stick
> with us here - it's a little complicated!) has developed a calculation that
> determines a multiplier to be applied to average international prices to
> achieve that goal. No matter which reference countries go into the basket,
> the multiplier applied to average international prices will be adjusted to
> save 30 percent. That doesn't mean the specific countries in the basket
> don't matter: it could impact how much each drug is discounted, but the
> multiplier is designed to balance the bundle to save Medicare 30 percent on
> physician-administered drugs overall.
> This is different from true reference pricing, in which countries set
> reimbursement rates at an average of what a group of reference countries
> pay for a drug, or use the single lowest price for each drug.
> Yes, it helps to read Public Citizen's full analysis, here.
> ------------
> Best,
> Steve
> Steven Knievel
> Access to Medicines Advocate
> Public Citizen | Protecting Health, Safety and Democracy
> TEL: +1 202-588-7769
> 1600 20th St. NW, Washington, DC 20009
> URL: http://www.citizen.org/access
> Twitter: @PCMedsAccess
> Public Citizen Foundation participates in the Combined Federal Campaign
> with the CFC Code 11168.
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