Start the experiments

It is at least beginning to dawn on all but the most obstinate of companies that current drug pricing paradigms are unsustainable. Yet barriers created by long-standing Medicare and Medicaid rules - some real and some perceived - have so far prevented the kind of experimentation with new pricing schemes that will be necessary to find new paradigms that can make biomedical innovation affordable.

In reality, there are several mechanisms that could be used to start experimenting with new pricing models, including waivers, pilot studies with the U.S. Department of Veteran's Affairs and early discussions with CMS...