Drug Pricing Reforms: The Danish Experience

Ulrich Kaiser, Susan J. Mendez, Thomas Rønde, Hannes Ullrich

    Research output: Contribution to journal › Journal article › Research › peer-review

    Abstract

    Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account.
    Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account.
    LanguageEnglish
    JournalEuropean Pharmaceutical Review
    Volume20
    Issue number2
    Pages18-19
    ISSN1360-8606
    StatePublished - 2015

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Kaiser, Ulrich ; Mendez, Susan J. ; Rønde, Thomas ; Ullrich, Hannes. / Drug Pricing Reforms : The Danish Experience. In: European Pharmaceutical Review. 2015 ; Vol. 20, No. 2. pp. 18-19
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    Kaiser, U, Mendez, SJ, Rønde, T & Ullrich, H 2015, 'Drug Pricing Reforms: The Danish Experience' European Pharmaceutical Review, vol. 20, no. 2, pp. 18-19.

    Drug Pricing Reforms : The Danish Experience. / Kaiser, Ulrich; Mendez, Susan J.; Rønde, Thomas; Ullrich, Hannes.

    In: European Pharmaceutical Review, Vol. 20, No. 2, 2015, p. 18-19.

    Research output: Contribution to journal › Journal article › Research › peer-review

    TY - JOUR

    T1 - Drug Pricing Reforms

    T2 - European Pharmaceutical Review

    AU - Kaiser,Ulrich

    AU - Mendez,Susan J.

    AU - Rønde,Thomas

    AU - Ullrich,Hannes

    N1 - CBS Library does not have access to the material

    PY - 2015

    Y1 - 2015

    N2 - Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account.

    AB - Reference price systems for prescription drugs have found widespread use as cost containment tools. Under such regulatory regimes, patients co-pay a fraction of the difference between pharmacy retail price of the drug and a reference price. Reference prices are either externally (based on drug prices in other countries) or internally (based on domestic drug prices) determined. In a recent study, we analysed the effects of a change from external to internal reference pricing in Denmark in 2005, finding that the reform led to substantial reductions in prices, producer revenues, and expenditures for patients and the health insurance system. We also estimated an increase in consumer welfare but the size effect depends on whether or not perceived quality differences between branded and other drugs are taken into account.

    M3 - Journal article

    VL - 20

    SP - 18

    EP - 19

    JO - European Pharmaceutical Review

    JF - European Pharmaceutical Review

    SN - 1360-8606

    IS - 2

    ER -

    Kaiser U, Mendez SJ, Rønde T, Ullrich H. Drug Pricing Reforms: The Danish Experience. European Pharmaceutical Review. 2015;20(2):18-19.

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