REFERENCE PRICING
Setting public reimbursement according to the chemical property of the drug (US HMO experience…):
- Strictly identical: limited to generics or to similar products
- Lowest or “average price”
- Not strictly a pricing device but implicit impact on prices
- Not for patented drugs (does not solve the issue…)
But practicalities have huge implications (e.g. Germany)
Fosters price competition in pharmaceutical markets
Controversial ? Review Lopez Casasnovas 2000