ARTICLE | Politics & Policy

CAP proposes plan to set drug prices

September 26, 2016 7:00 AM UTC

The Center for American Progress, a think tank closely associated with the Obama administration and Hillary Clinton's presidential campaign, released a plan for setting the prices of selected new drugs. The proposed framework would allow payers, including CMS, to use comparative effectiveness research to set benchmark price ranges for negotiating new drug prices. CAP said the scheme would result in "value-based" prices.

In its proposal, CAP suggested that the Secretary of HHS should decide whether to refer a new drug for review based on its price, indications, usage factors and availability of alternative treatments. Two certified, non-profit research organizations would each review comparative effectiveness data and recommend a price in a draft report, which would be revised after a 90-day comment period. The research organizations would be governed by boards with representation from payers, patients, drug companies and consumer groups, and would be required to use a transparent methodology. ...