Drug-pricing debate redux — Should cost-effectiveness analysis be used now to price pharmaceuticals?

Date: November 13, 2021
Journal: New England Journal of Medicine
Citation: Neumann PJ, Cohen JT, Ollendorf DA. Drug-Pricing Debate Redux - Should Cost-Effectiveness Analysis Be Used Now to Price Pharmaceuticals? N Engl J Med. 2021 Nov 13. doi: 10.1056/NEJMp2113323.

The idea of permitting the government to negotiate pharmaceutical prices raises a question about the basis for negotiations: how to judge what’s a fair price. Absent well-functioning markets, cost-effectiveness analyses can clarify the value that therapies deliver.

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