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What If All Value-Based Drugs Were Tremendous? (0:57)

Lowering the cost of expensive drugs via value-based pricing is a popular idea. Drugs that have a tremendous impact on disease, that extend lifespans and improve quality of life — that have higher value — are price higher, while drugs with less impact are priced lower.

“It’s a good idea. It’s better than what we currently have, but it’s also very incomplete,” says Harvard Kennedy School Professor Amitabh Chandra. “In fact, it’s very very incomplete. What happens if all the drugs are tremendous? What happens if tremendous drugs are paid their value-based price? What if the value-based price is in the millions of dollars?”

From the NEJM Catalyst event Navigating Payment Reform for Providers, Payers, and Pharma, held at Harvard Business School, November 2, 2017. Watch Amitabh Chandra’s talk.

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