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    Opinion: Value-based agreements could disrupt how we pay for new therapies

    We need to reengineer the reimbursement system to support the development and use of new and expensive therapies. Value-based agreements can help.
    by Steve Brozak Apr 08, 2019 5 minutes
    On Tuesday, pharmacy benefit manager executives will be sitting where pharmaceutical company execs sat last month, testifying before the Senate Finance Committee.

    On Tuesday, the Senate Finance Committee will hold its second hearing in a series on drug pricing. Led by chairman Senator Chuck Grassley (R-Iowa) and ranking member Ron Wyden (D-Oregon), this hearing is a follow-up of the widely publicized grilling in February of CEOs and senior executives of seven major pharmaceutical companies.

    This time around, five executives from major pharmacy benefit managers (PBMs) will be in the hot seat.

    The February meeting took a surprising turn when Pascal Soriot, CEO of AstraZeneca, raised the concept of value-based agreements (VBAs), in which the price of a medicine is directly linked to the value it provides to patients, payers, and the health care system. “Value-based agreements have the potential to transform how medicines are priced and reimbursed in the U.S.,” Soriot told the committee.

    Value-based medicine isn’t a new concept, but it has made the leap from white

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