Innovative Contracting for Pharmaceuticals and Medicaid's Best-Price Rule.

  title={Innovative Contracting for Pharmaceuticals and Medicaid's Best-Price Rule.},
  author={Rachel Sachs and Nicholas Bagley and Darius N. Lakdawalla},
  journal={Journal of health politics, policy and law},
  volume={43 1},
In recent years, drug manufacturers and private payers have expressed interest in novel pricing models that more closely link a drug's price to its value. Indication-based pricing, outcome-based pricing, drug licenses, and drug mortgages have all been discussed as alternatives to paying strictly for volume. Manufacturers and payers have complained, however, that Medicaid's "best-price rule" inhibits their ability to enter into these new pricing arrangements. This article examines the best-price… 

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