New NBCH Action Brief: Value-based Purchasing: Pharmaceutical Management

In 2012, health care spending in the United States reached $2.8 trillion, with pharmaceutical costs representing more than $263 billion or 9% of overall costs. Given the rise in medical expenditures, purchasers – employers, unions, and governmental entities – are seeking strategies to optimize employee health while managing health care costs, including drug spend. Purchasers can apply the strategies of value-based purchasing to add quality to what has been a price-only focus, thus allowing a measure of value – the amount of health gained per health care dollar spent. This Action Brief outlines the scope of value-based purchasing for pharmaceuticals as well as how health plans are addressing the issues based on data from eValue8™, a purchaser resource for tracking health plan performance to improve health outcomes and control costs for purchasers and consumers. Lastly, the brief highlights the merits and potential risks of current and emerging pharmaceutical purchasing strategies for purchasers and consumers.

Access the latest in NBCH's Action Brief series here.