Advocacy

PhRMA Value Collaboration

Recent advances in science are transforming our approach to treating and curing disease. As policymakers seek solutions to ensure patient access to the treatments they need and accelerate discovery of tomorrow’s cures, we need thoughtful reforms to advance payment and delivery systems that are as innovative as new medicines. The Value Collaborative aims to:

  • COLLABORATE to develop innovative approaches to promote value and innovation
  • ADVANCE policy ideas to find new and innovative ways to pay for medicines
  • FURTHER the science of measurement to better assess value

Collaborating on Better Approaches to Value

We are focused on advancing practical solutions in three key areas: better frameworks to support value-based care decisions; increased value-based contracting; and improved capacity for quality measurement. We will work collaboratively with stakeholders and thought leaders on reforms that make a difference for patients, consumers and the overall health care system. 

Well-Structured Value Frameworks Support Patient-Centered, High Quality Care

When stakeholders work together to develop well-structured frameworks to assess the value of medical treatments, these tools can drive patient-centered, value-based health care in the private sector. Value assessments should reflect the unique health needs different stakeholders and individual patients who often respond differently to medicines based on factors such as age, genetic variation and comorbidities. 

Market-Based Reforms Can Expand Partnerships Between Companies and Payers

As the U.S. health care system evolves away from fee-for-service to value-driven payment models, payers are increasingly pursuing value-based contracts with biopharmaceutical companies for new medicines. These innovative arrangements hold significant promise in controlling costs, providing patient access to treatments and strengthening evidence based on the value of new medicines. 

Quality Measurement Can Help Hold the Health Care System Accountable for Value

We will work with other stakeholders to catalyze and support initiatives to advance the science of measuring quality, patient-centeredness and value in health care. Quality measures can help identify areas for improvement, hold the health care system accountable for providing the best care for patients and assess progress in driving value.     

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Advancing Policy

America’s biopharmaceutical companies are committed to working with policymakers and stakeholders to further the move toward a value-driven health care system and advance solutions that enhance the private competitive market. We support reforms that will enable private companies to negotiate better deals for prescription medicines and protect patients from unaffordable out-of-pocket costs. 

Biopharmaceutical Companies Need Flexibility to Communicate Broadly with Payers and Health Decision Makers

Current rules limit companies’ ability to share important, scientifically sound research with insurers and health systems, particularly for medically accepted uses that have not been approved by the U.S. Food and Drug Administration (FDA). In order for biopharmaceutical companies to become partners—rather than simply vendors—we need greater flexibility to communicate about the performance of our products.

Regulatory and Legal Barriers That Limit Value-Based Payment Arrangements Must Be Addressed

Private payers and biopharmaceutical manufacturers have made clear their interest in pursuing innovative contracting approaches to more directly link prescription medicine pricing to value. As an industry, we are exploring new approaches in the private market, such as being reimbursed depending on how well our medicines work for patients. Unfortunately, outdated laws and regulations are making it harder to move in this direction. Removing existing regulatory and legal barriers would save costs while creating a more robust and competitive marketplace.

 

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