Forefront: Achievements Of The Maryland Primary Care Program
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The Latest Research, Commentary, And News From Health Affairs

Thursday, December 16, 2021
Dear John,

Two papers in the December 2021 issue of Health Affairs focus on pharmaceuticals.
Antibiotic Development & Manufacturer Rebates
Neil Gandhi and Kevin Schulman assessed how Medicare’s new technology add-on payments (NTAP) program could be used as a market support mechanism to incentivize antibiotic development.

“There is an urgent need to provide a sustainable financial model for investment in antibiotics for multi-drug resistant bacteria,” they wrote.

They illustrated three models and found the reimbursement required to sustain research and development would range from $637 to $121,365, depending on the incidence of the resistant infection in question and the payment model.  

Benjamin Rome and Aaron Kesselheim examined the implications of a proposed policy that would require higher manufacturer rebates for drugs with accelerated Food and Drug Administration approval.

Between 2015 and 2020, Medicaid spent $6.7 billion on 88 accelerated approval drugs. Under the proposed policy, they found that “applying base rebates of 30–80 percent would have resulted in $0.6 to $5.2 billion in savings during 2015–20, compared to the existing base rebate of 23.1 percent.”  

Also in the December issue, Rick Mathis reviewed The Right Price: A Value-Based Prescription for Drug Costs by Peter Neumann, Joshua Cohen, and Daniel Ollendorf.

Today in Health Affairs Forefront, Howard Haft and Kevin Klembczyk discuss the Maryland Primary Care Program’s achievements across several notable goals in quality, care delivery, savings, and statewide public health leadership.

Anish Mahajan addresses challenges concerning health-related social needs within the Medicaid program and argues that there are many promising examples of the health sector advancing the cause of community-level interventions.

Check out our COVID-19 Resource Center for Health Affairs content about all things related to the pandemic.

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About Health Affairs

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