EU expert panel offers recommendations for innovative pricing models

In response to a request for opinion on innovative pricing models from the European Commission, an expert panel said it is "unlikely that a single payment model will be optimal for all situations." The panel reviewed models for high-cost, new medicines and made a number of recommendations that member states should consider when designing payment models within their health systems.

While prices have traditionally been the main instrument in payment models, the authors recommended the use of contracts that use more flexible pricing models, including conditional payment for results and fines for negative results. The authors suggested exploring the use of non-linear payment systems, including bundling, price-volume agreements, and differentiation across geographies and indications. A second recommendation was to use different ways to set prices and change the institutional setting in which prices are formed, including actions that increase the bargaining power of payers in price negotiations. A third recommendation includes the use of different instruments to reward innovations such as innovation procurement and public-private initiatives...