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Money back guarantee? A cost–benefit framework of performance-based agreements (PBAs) for the reimbursement of pharmaceuticals

  • A. Carletto
  • A. Cicchetti
  • S. Coretti
  • V. Moramarco
  • M. Ruggeri
Regular Article
  • 26 Downloads

Abstract

The aim of this paper is to provide an empirical framework based on a discrete-time Markov chain to assess the costs and benefits of Performance Based Agreements (PBAs) for the reimbursement of pharmaceuticals. We provide an empirical testing using a case study referring to a treatment recently approved for reimbursement in Italy. The implementation of this framework is challenging for the agencies dealing with pricing and reimbursement decisions given the uncertainty associated with the treatment effectiveness and safety. On the other hand, empirical evidence shows that the awareness of the expected costs associated with different reimbursement schemes is necessary to inform decision-makers.

Keywords

Performance Based Agreements Pricing and Reimbursement Pharmaceutical policy Cost-benefit Analysis Markov models 

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Copyright information

© Eurasia Business and Economics Society 2018

Authors and Affiliations

  • A. Carletto
    • 1
  • A. Cicchetti
    • 2
  • S. Coretti
    • 2
  • V. Moramarco
    • 3
  • M. Ruggeri
    • 3
  1. 1.AIFA, Agenzia Italiana del FarmacoRomeItaly
  2. 2.ALTEMS – Post Graduate School of Health Economics and ManagementCatholic University of the Sacred HeartRomeItaly
  3. 3.Institute of Economic PolicyCatholic University of the Sacred HeartMilanItaly

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