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Drugs priced at or below the reference price are subsidized while drugs above the reference price require the patient to pay the excess in part or in total.
"Patients choosing colonoscopy settings (charging) below the reference price have no co-pay, which may be attractive to patients," Lieberman told Reuters Health by email.
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Drugs priced below 30percentnt of the reference price are exempted from regular co-payments.
However, because atorvastatin has been clustered with other statins under the reference price scheme (see below), the reimbursement level is much lower than the price.
Our results for the price elasticity between categories were nonsignificant for both the reference price and price discount.
Therefore, the incentive to the manufacturer is to set a price close to the reference price.
On the other hand, when the retail price was lower than the reference price, the payer cost was obtained from the reference price minus the patient co-payment.
Effects of the reference price (or nonpromotional price) and price discount associated with a price promotion were also estimated as control variables (Supplemental Table 9).
There is no reference pricing scheme that requires the patient to pay the difference between the actual price of the medicine and the reference price.
An MPR of 1 means that the local price is equivalent to the reference price, and an MPR of 2 that the local price is twice the reference price [ 35].
The difference between the actual end price and the reference price will have to be paid by the patient.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com