Government publishes its response to value-based pricing consultation
The Government's response to the consultation on proposals for a new value-based system of pricing medicines has been published. You can download the response here. (You can also read the original CCG news story about the launch of the consultation here.)
In its response, the Government acknowledges that plans are at any early stage and that they have yet to make any final decisions of the workings of the value-based pricing system. The Government confirms that it intends to continue to engage with stakeholders as it develops its proposals. It is clear that there will be further opportunities to contribute to shaping the new system.
The key points from the Government’s response include:
- The vast majority of branded medicines already on the market before 2014 will be covered by the successor arrangements to the current Pharmaceutical Price Regulation Scheme. However there is a possibility that a small number of existing drugs may be assessed under value-based pricing on a case-by-case basis. Potential candidates might include: major new indications for existing drugs; drugs considered but not recommended by NICE; some drugs funded through the Cancer Drugs Fund; and drugs recommended by NICE where current guidance is due for review
- No final decision has been made on the best way to deliver improved and sustainable patient access for clinically effective medicines for the rarest conditions. The Department of Health is determined to design a value-based pricing system in a way that minimises the need for parallel mechanisms, however it acknowledges there may be instances where it is sensible to conclude that an individual medicine should not be assessed under value-based pricing
- The Department of Health is planning a programme of research that will enable it to determine weightings that accurately reflect the full value of new products to society. The resulting weightings and methodologies for calculating prices will be published in full so that patient groups, companies and other stakeholders can have a complete understanding of the price to be expected for products that meet society’s needs
- The Government is considering whether it would be sensible to assess some Cancer Drugs Fund drugs under the value-based pricing arrangements, with the aim of identifying a price level at which they could be made available on a continuing basis to NHS patients who may benefit from them when the Fund comes to an end in 2014
- The Government argue that it is important that there is a common medicines pricing policy across the UK and they expect value-based pricing to be a UK-wide system. However, the Devolved Administrations determine many aspects of health policy, including those affecting the use and availability of medicines within their health systems. The Department of Health will work closely with its counterparts in the health departments of the Devolved Administrations to ensure a coherent approach
