Abstract
In This Issue.
In the fourth quarter of 2005, governments in several of the world's leading
pharmaceutical markets prepared the ground for major reforms to their drug
pricing and reimbursement systems. The United States readied itself for the
January 2006 launch of the new Medicare Part D outpatient prescription drug
benefit, and a leading pharmacy benefit management company made news with
plans to stimulate greater use of generics. The governments of France,
Germany, Spain, and Japan all prepared legislation that would introduce major
new cost-containment mechanisms into their respective health care systems. The
Italian government, however, undertook little in the way of new cost-cutting
activity. The U.K. government unveiled measures to expedite access to
innovative drugs (especially cancer therapies) and to extend new prescribing
powers to qualified nurses and pharmacists. In this report, we review major
events in the fourth quarter of 2005 in the pharmaceutical pricing,
reimbursement, and prescribing environment in the aforementioned countries and
the European Union. We focus on measures that health care payers are using to
curb their drug expenditures and to improve patient access to medications. We
conclude with an assessment of the outlook and implications for the
pharmaceutical industry.
Table of Contents
Overview
United States
- Continued Criticism of Pharmaceutical Price Increases
- Preparations for Medicare Prescription Drug Benefit
- Employers' Response .
- Medicare Beneficiaries' Response
- Pharmaceutical Companies' Response
- Potential Savings from Greater Use of Generics
- Express Scripts Excludes Lipitor from Its Formulary
- Radical Reform of Florida's Medicaid Program
European Union
- Potentially Wider Application of Supplementary Protection Certificates
- Prospects for Pricing Reform
France
- Aggressive Cost-Cutting Program .
- Review of Reimbursement Status of Hundreds of Drugs
Germany
- Increased Pharmaceutical Spending Despite Lower Prices
- Potential for Substantial Savings on Medicines
- Government Plans for Stricter Cost-Containment
- More-Aggressive Reference Prices
- Price Freeze .
- Price Cuts on Off-Patent Medicines and an End to Rebates in Kind
- Daily Cost of Therapy Limits for Frequently Prescribed Medicines
- Impact of Reference Pricing
- Defeat for Pfizer in Court
- Manufacturer Rebates to Health Insurance Funds
Italy
- Modest Decrease in Pharmaceutical Spending
- Pharmacists Commit to Reducing the Cost of Medicines
Spain
- New Medicines Law Approved by Cabinet
- Call for Greater Transparency in Reimbursement Procedures
United Kingdom
- Patient Action Against Lack of Access to Certain Drugs
- Accelerated NICE Appraisal Process
- Expanded Prescribing Powers for Nurses and Pharmacists
Japan
- Industry Frustration over Proposed Pricing and Reimbursement Reforms
- Increasing Familiarity with Generic Drugs
Outlook and Implications for the Pharmaceutical Industry