[Ip-health] Addressing PhRMA's lawsuit

[Donald W. Light]

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A key argument of the pharmaceutical industry in the US against state progr=
ams in the USA and efforts to use formularies in order to negotiate lower p=
rices on drugs is that beneficiaries will be denied access to needed medici=
nes.  Drugs should be decided on need, not price.

This argument calls for a short article, like Sounding Board, that describe=
s the Essential Medicines project of MSF and others, because expert clinici=
ans have assembled a list of "essential drugs" that treat over 95% of manki=
nd's ills.  Thus, if a state includes all the drugs on the Essential Medici=
nes list, almost all patients' needs will be met.

States could also benefit from using a variation on reference pricing rathe=
r than just putting on one drug in each class that came in with the lowest =
bid.  Reference pricing also sends out the right signal, much better than c=
o-pays.  It signals, "We are paying for a good and effective drugs in each =
class to address each medical problem.  If you want something m ore expensi=
ve, you will have to pay for it."

Thus, essential medicines plus reference pricing on drugs beyond the cheape=
st effective drug provides choice while being clinically and socially respo=
nsible.

I hope someone takes up this challenge.

Don Light


Prof. Donald W. Light
Fax: 1-609-924-1830
Tel: 1-609-924-9220


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