Can states save money on increasingly expensive prescriptions for Medicaid patients by setting prices based not on drugmakers' wishes, but on how well the medicines control, contain or cure disease?
The notion of tying drug payments to results, called “pay-for-performance pricing” or “value-based pricing,” already is being tested by some health insurance companies, some pharmaceutical companies and Medicare. And just last week, the Oregon Health & Science University announced it will undertake a large-scale research project to examine how states could apply the concept to Medicaid.
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