ABSTRACT
Value-based pricing (VBP) encompasses novel payment models for drugs. It was originally developed for a single-payer setting, such as the United Kingdom’s National Health Service, to aid in price determinations for novel drugs using a cost per quality-adjusted life year threshold. However, in the United States, where a pluralistic system of insurance providers makes for a great array of coverage options, such a schema is not so straightforward. This chapter will discuss the use of VBP in the US and Europe in terms of cost-effectiveness analyses and negotiating methods. Examples are given and challenges to implementation of such schema are discussed.
