Selecting Reference Countries in External Reference Based Pricing: The Case Study of Iran Selecting reference countries in external reference based pricing
Iranian Journal of Pharmaceutical Sciences,
Vol. 14 No. 3 (2018),
1 July 2018
,
Page 36-48
https://doi.org/10.22037/ijps.v14.40637
Abstract
Most countries are using some kinds of pharmaceutical policies, like external reference-based pricing, to control the costs of medicines. This policy could be implemented in different ways and there is no systematic method for selecting reference countries. In this study, we tried to identify and classify the factors affecting the selection of reference countries in Iran .Delphi method was employed to elicit experts’ opinion in pharmaceutical sector on the parameters affecting the choice of reference countries. Members of the panel were experts in the field of policymaking, manufacturing, distribution, and importation of medicines, insurance companies, and academics who were more familiar with the purpose of the research. Panels were run in three rounds. The results of this study reveal that the impact of pharmaceutical, economy, and health sectors characteristics has been more effective, in selecting reference countries. Health insurance coverage was the most important index among all the different sectors. Other important indexes included pharmaceutical pricing system, mechanism of drug registration, gross national income (GNI) per capita, health expenditure per capita, health expenditure (share of GDP) and the out-of-pocket health expenditure. To have an efficient pharmaceutical external reference-based pricing, it is important to select reference countries with more similar important parameters. Obviously, any change in these parameters has to be considered and adjusted during the time.
- External reference
- Pricing
- Delphi method
- Selecting countries
- Pharmaceutical
- Iran.
How to Cite
References
[2] Food And Drug Administration of The Islamic Republic of Iran. [Available from: http://www.fda.gov.ir/.
[3] M. Tuomi. External reference pricing of medicinal products: simulation-based considerations for cross-country coordination. Final Report, European Commission, Brussels. (2014).
[4] P. Dylst, A. Vulto, S. Simoens. The impact of reference-pricing systems in Europe: a literature review and case studies. Expert Rev. Pharmacoeconomics Outcomes Res. (2011) 11: 729-737.
[5] J. Espin, J. Rovira, A. De Labry. External Reference Pricing, WHO/HAI Project on Medicine Prices and Availability. WHO review series on Pharmaceutical Pricing Policies and Interventions. Working Paper. (2011).
[6] S.H. Alexandra Cameron, Patti Whyte, Sarah Ramsey and Lisa Hedman. WHO guideline on country pharmaceutical pricing policies. in: S. Ramsey (Ed.). (2013).
[7] K.R. Brekke, I. Königbauer, O.R. Straume. Reference pricing of pharmaceuticals. J Health Econ. (2007) 26: 613-642.
[8] P. Kanavos, U. Reinhardt. Reference pricing for drugs: is it compatible with US health care? Health Aff. (2003) 22: 16-30.
[9] K. Ruggeri, E. Nolte. Pharmaceutical Pricing, The Use of External Reference Pricing. Rand Health Q. (2013) 3.
[10] A. Searles, S. Jefferys, E. Doran, D.A. Henry. Reference pricing, generic drugs and proposed changes to the Pharmaceutical Benefits Scheme. Med. J. Aust.. (2007) 187: 236-239.
[11] J. Mestre-Ferrandiz. Reference prices: the spanish way. Investigaciones Economicas. (2003) 27: 125-149.
[12] M. Miraldo. Reference pricing and firms’ pricing strategies. J Health Econ. (2009) 28: 176-197.
[13] L. Pohjolainen. Reference price and price competition-Evidence from the Finnish pharmaceutical market. Department of Economics. Aalto University. (2012).
[14] J. Puig-Junoy, I. Moreno-Torres. Do generic firms and the Spanish public purchaser respond to consumer price differences of generics under reference pricing? Health Policy. (2010) 98: 186-194.
[15] K.R. Brekke, A.L. Grasdal, T.H. Holmås. Regulation and pricing of pharmaceuticals: Reference pricing or price cap regulation? Eur. Econ. Rev.. (2009) 53: 170-185.
[16] P. Grootendorst, L.R. Dolovich, A. Holbrook, A. Levy, B. O’Brien. The impact of reference pricing of cardiovascular drugs on health care costs and health outcomes: evidence from British Columbia. Research Institute for Quantitative Studies in Economics and Population, McMaster University. (2002).
[17] J. Puig-Junoy. Do Higher-Priced Generic Medicines Enjoy a Competitive Advantage Under Reference Pricing? Appl. Health Econ. Hea. (2012) 10: 441-451.
[18] T.A. Faunce. Reference pricing for pharmaceuticals: is the Australia-United States Free Trade Agreement affecting Australia's Pharmaceutical Benefits Scheme? Med J Aust. (2007) 187: 240-242.
[19] A. Merino-Castelló. Impact of the reference price system on the pharmaceutical market: a theoretical approach. Madrid: National Economic Res. Associates (NERA). Universitat Pompeu Fabra. (2003).
[20] P.M. Danzon, A. Towse. Differential pricing for pharmaceuticals: reconciling access, R&D and patents. Int. J. Health Care Finance Econ. (2003) 3: 183-205.
[21] E. Docteur. Value for money and valued innovation: A trade-off or mutually compatible goals? OECD High-Level Symposium on Pharmaceutical Pricing Policy. (2008) pp. 11-12.
[22] L. Garattini, D. Cornago, P. De Compadri. Pricing and reimbursement of in-patent drugs in seven European countries: A comparative analysis. Health Policy. (2007) 82: 330-339.
[23] J. Espin, J. Rovira. Analysis of differences and commonalities in pricing and reimbursement systems in Europe. Brussels: DG Enterprise and Industry of the European Commission. (2007).
[24] G. Kockaya, P. Kılıc. Pharmaceutical policies and market access in Turkey. ISPOR connections. (2012) 18: 8-10.
[25] P. Kanavos, E. Nicod, J. Espin, S. Van Den Aardweg. Short-and long-term effects of value-based pricing vs. external price referencing. EMiNet. (2010).
[26] J. Landeta. Current validity of the Delphi method in social sciences. Technol Forecast Soc. Change. (2006) 73: 467-482.
[27] S. Sivell, V. Lidstone, M. Taubert, C. Thompson, A. Nelson. Identifying the key elements of an education package to up-skill multidisciplinary adult specialist palliative care teams caring for young adults
with life-limiting conditions: an online Delphi study. BMJ supportive & palliative care. (2014): bmjspcare-2013-000595.
[28] L. Miller. Determining what could/should be: The Delphi technique and its application. meeting of the 2006 annual meeting of the Mid-Western Educational Research Association, Columbus, Ohio; (2006).
[29] R.C. Schmidt. Managing Delphi surveys using nonparametric statistical techniques. decision Sciences. (1997) 28: 763-774.
[30] C.-C. Hsu, B.A. Sandford. The Delphi technique: making sense of consensus. Practical assessment, research & evaluation. (2007) 12: 1-8.
[31] F. Hasson, S. Keeney, H. McKenna. Research guidelines for the Delphi survey technique. J. Adv. Nurs. (2000) 32: 1008-1015.
[32] G. Rowe, G. Wright. The Delphi technique: Past, present, and future prospects—Introduction to the special issue. Technol Forecast Soc. Change. (2011) 78: 1487-1490.
[33] I.C.P. database. World Development Indicators. World Bank. [Available from: http://beta.data.worldbank.org/indicator/.
[34] T.B. Cueni. International Price Referencing-Is there a “right” way to perform it? ISPOR 15th Annual European CongressBerlin, (2012) Nov 3-7 Berlin, Germany.
- Abstract Viewed: 326 times
- IJPS_Volume 14_Issue 3_Pages 36-48 Downloaded: 282 times