To lower pharmaceutical expenditure,the Chinese government has replaced the Fixed Percent Markup (FPM) policy with the policies of the Separation of Outpatient Pharmacies from Hospitals (SOPH) and the Zero Markup Drug...To lower pharmaceutical expenditure,the Chinese government has replaced the Fixed Percent Markup (FPM) policy with the policies of the Separation of Outpatient Pharmacies from Hospitals (SOPH) and the Zero Markup Drug (ZMD).We build a multistage game theoretic model comprising a hospital and a drugstore to analyze the policies' impacts on the providers' drug selection and pricing behaviors.By comparing the equihibrium outcomes,we draw the following conclusions:(i) FPM,especially for one imposing a strict margin ceiling,actually induces an expensive prescription given patients' great compliance.(ii) Both SOPH and ZMD can conditionally lower patients' expenditure,and their performances rely on the hospital's selection.(iii) A proper rate of insurance coverage and a removal of drug rebate are helpful to improve the policies' performance.展开更多
Diabetes is a chronic disease that affects over 30 million people in the United States.Of these,approximately 7.4 million use one or more formulations of insulin to manage their condition.There is a significant financ...Diabetes is a chronic disease that affects over 30 million people in the United States.Of these,approximately 7.4 million use one or more formulations of insulin to manage their condition.There is a significant financial burden on diabetic individuals,as the price of insulin keeps increasing each year.Such consistent and drastic increases in the price of insulin are due to the complexities in the insulin supply chain,pricing mechanisms particularly due to pharmacy benefit managers(PBMs),and the dominance of a few insulin manufacturers in the market.This policy analysis has been undertaken independently and is based on information from peer-reviewed journals,government organizations and agencies,and credible news sources.Politicians and various stakeholders in the supply chain have made several policy recommendations on the pricing of insulin.From the data and information collected,we suggest basing a patient's co-payment on the net price instead of the list price of insulin,and that there should be real-time transparency in the negotiations between PBMs and pharmaceutical companies on rebates.展开更多
基金supported in part by the National Natural Science Foundation of China under grant Nos.71390334 and 71661167009the National Social Science Fund under grant No.KBN15001531.
文摘To lower pharmaceutical expenditure,the Chinese government has replaced the Fixed Percent Markup (FPM) policy with the policies of the Separation of Outpatient Pharmacies from Hospitals (SOPH) and the Zero Markup Drug (ZMD).We build a multistage game theoretic model comprising a hospital and a drugstore to analyze the policies' impacts on the providers' drug selection and pricing behaviors.By comparing the equihibrium outcomes,we draw the following conclusions:(i) FPM,especially for one imposing a strict margin ceiling,actually induces an expensive prescription given patients' great compliance.(ii) Both SOPH and ZMD can conditionally lower patients' expenditure,and their performances rely on the hospital's selection.(iii) A proper rate of insurance coverage and a removal of drug rebate are helpful to improve the policies' performance.
文摘Diabetes is a chronic disease that affects over 30 million people in the United States.Of these,approximately 7.4 million use one or more formulations of insulin to manage their condition.There is a significant financial burden on diabetic individuals,as the price of insulin keeps increasing each year.Such consistent and drastic increases in the price of insulin are due to the complexities in the insulin supply chain,pricing mechanisms particularly due to pharmacy benefit managers(PBMs),and the dominance of a few insulin manufacturers in the market.This policy analysis has been undertaken independently and is based on information from peer-reviewed journals,government organizations and agencies,and credible news sources.Politicians and various stakeholders in the supply chain have made several policy recommendations on the pricing of insulin.From the data and information collected,we suggest basing a patient's co-payment on the net price instead of the list price of insulin,and that there should be real-time transparency in the negotiations between PBMs and pharmaceutical companies on rebates.
