Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Drug Price Regulation

  • Jean-Michel JosselinEmail author
  • Laurie Rachet Jacquet
  • Véronique Raimond
  • Lise Rochaix
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_714

Abstract

Drug prices are regulated in a legal framework that organizes the negotiation between pharmaceutical firms and a third-party payer responsible for healthcare reimbursement. This regulation aims at compensating for market failures associated with drug specificities. Explicit economic reasoning through the so-called health technology assessment framework is increasingly embedded in the institutional and administrative process of the evaluation procedure leading to market access, pricing and reimbursement for new drugs.

This is a preview of subscription content, log in to check access.

References

  1. Arrow K (1963) Uncertainty and the welfare economics of medical care. Am Econ Rev 53:941–973Google Scholar
  2. Chalkidou K, Tunis S, Lopert R, Rochaix L, Sawicki P, Nasser M, Xerri B (2009) Comparative effectiveness research and evidence-based health policy: experience from four countries. Milbank Q 87:339–367CrossRefGoogle Scholar
  3. Drummond M, Sculpher M, Claxton K, Stoddart G , Torrance G (2015) Methods for the economic evaluation of health care programmes. Oxford University Press, New YorkGoogle Scholar
  4. Franken M, Heintz E, Gerber-Grote A, Raftery J (2016) Health economics as rhetoric: the limited impact of health economics on funding decisions in four European countries. Value Health 19:951–956CrossRefGoogle Scholar
  5. Gerber-Grote A, Sandmann G, Zhou M, Thoren T, Schwalm A, Weigel C, Balg C, Mensch A, Mostardt S, Seidl A, Lhachimi K (2014) Decision making in Germany: is health economic evaluation as a supporting tool a sleeping beauty? Z Evid Fortbild Qual Gesundhwes 108:390–396CrossRefGoogle Scholar
  6. Grossman M (1972) On the concept of health capital and the demand for health. J Polit Econ 80:223–255CrossRefGoogle Scholar
  7. Heintz E, Gerber-Grote A, Ghabri S, Hamers F, Prevolnik Rupel V, Slabe-Erker R, Davidson T (2016) Is there a European view on health economic evaluation? Results from a synopsis of methodological guidelines used in the EUnetHTA partner countries. PharmacoEconomics 34:59–76CrossRefGoogle Scholar
  8. Hurley J (2000) An overview of the normative economics of the health sector. In: Culyer A, Newhouse J (eds) Handbook of health economics. Elsevier, Amsterdam, pp 55–118Google Scholar
  9. ISPOR (International Society for Pharmacoeconomics and Outcomes Research), Sullivan S, Mauskopf J et al (2014) Budget impact analysis-principles of good practice: report of the ISPOR 2012 budget impact analysis good practice II task force. Value Health 17:5–14CrossRefGoogle Scholar
  10. Klingler C, Shah M, Barron J, Wright S (2013) Regulatory space and the contextual mediation of common functional pressures: analyzing the factors that led to the German efficiency frontier approach. Health Policy 109:270–280CrossRefGoogle Scholar
  11. Mauskopf J (1998) Prevalence-based economic evaluation. Value Health 1:251–259CrossRefGoogle Scholar
  12. Mauskopf J (2014) Budget-impact analysis. In: Culyer A (ed) Encyclopedia of health economics, vol 1. Elsevier, Amsterdam, pp 98–107CrossRefGoogle Scholar
  13. Mauskopf J, Earnshaw S (2016) A methodological review of US budget-impact models for new drugs. PharmacoEconomics 34:1111–1131CrossRefGoogle Scholar
  14. McCabe C, Claxton K, Culyer A (2008) The NICE cost-effectiveness threshold: what it is and what that means. PharmacoEconomics 26:733–744CrossRefGoogle Scholar
  15. Meltzer D (1997) Accounting for future costs in medical cost-effectiveness analysis. J Health Econ 16:33–64CrossRefGoogle Scholar
  16. Morris S, Devlin N, Parkin D (2007) Economic analysis in health care. Wiley, New YorkGoogle Scholar
  17. Rice T, Rosenau P, Unruh L, Barnes A, Saltman R, van Ginneken E (2013) United States of America: health system review. Health Syst Transit 15:70–80Google Scholar
  18. Sorenson C, Chalkidou K (2012) Reflections on the evolution of health technology assessment in Europe. Health Econ Policy Law 7:25–45CrossRefGoogle Scholar
  19. Walton S, Basu A, Mullahy J, Hong S, Schumock G (2017) Measuring the value of pharmaceuticals in the US health system. PharmacoEconomics 35:1–4CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  • Jean-Michel Josselin
    • 1
    Email author
  • Laurie Rachet Jacquet
    • 2
  • Véronique Raimond
    • 3
  • Lise Rochaix
    • 2
  1. 1.University of Rennes 1 and CREM UMR-CNRSRennesFrance
  2. 2.HospinnomicsParis School of EconomicsParisFrance
  3. 3.Haute Autorité de santéSaint-DenisFrance