Developing the pricing system for pharmaceuticals could save billions

The Swedish Dental and Pharmaceutical Benefits Agency, the TLV, is submitting a report to the Government today indicating how the pricing system for medicines can be developed. Billions of crowns can be saved through active cooperation with the pharmaceutical industry.

-The TLV estimates that, on the whole, the proposed improvements could save almost 3 billion Skr over a three-year period, says Gunilla Hulth Backlund, Director-General at the TLV.

The agency has identified a range of opportunities for development in regard to the value-based pricing system. Examples of this include more effective repeat reviews of which medicines shall be part of the reimbursement system. This is estimated to save 900 million Swedish crowns. Over and above this up to 2 billion Swedish crowns can be saved by the pharmaceutical industry proactively cooperating on cost controls.

There are other options available to develop the pricing system where this active collaboration does not lead to the expected savings. These alternatives are presented in more detail in the report.

Furthermore, collaboration with the county councils in their work to achieve a rational and cost-effective usage of pharmaceuticals is a crucial component in extracting the full impact from the TLV's measures.

The TLV proposes the Government consider measures to stimulate clinical research and also contains a number of other measures and proposals.

Facts on value-based pricing

A crucial departure point in the TLV's decisions is that medicines reimbursed with public funds and thereby part of the reimbursement system shall be cost-effective. In its evaluations the TLV examines a medicine's cost-effectiveness including all of the positive effects a medicine has on health and quality of life for patients. This means that the agency takes account of if the patient needs to use healthcare services more seldom, is afflicted by side-effects, avoids an operation, can work instead of being on sick leave and more. Our objective is to extract as much health as possible for public funds.