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Associated Press
13-05-2025
- Health
- Associated Press
New Studies Recommend Inclusion of Dynamic Inputs in Cost-Effectiveness Analyses to Better Reflect Drug Value Over Time
Cost-effectiveness models that exclude dynamic pricing likely underestimate a treatment's benefits versus its costs to society WASHINGTON, DC, UNITED STATES, May 13, 2025 / / -- Two new studies published in Value in Health underscore the importance of incorporating dynamic pricing and other evolving inputs into cost-effectiveness analyses (CEAs) to more accurately represent the value of prescription drugs across their lifecycles. 'CEAs are comprised of both science and judgment – which is why they are a tool, not a rule,' said NPC Chief Science Officer Jon Campbell, PhD, who was an author on both studies. 'This research supports more useful tools that better reflect market realities.' The first paper, ' U.S. Drug Pricing Patterns Before Loss of Exclusivity, ' characterizes changes in drug prices following launch and prior to loss of market exclusivity to enable the inclusion of dynamic pricing assumptions in CEAs. The paper is authored by Ching-Hsuan Lin, MD, MPH, and Joshua Cohen, PhD, of the Center for the Evaluation of Value and Risk in Health (CEVR) at Tufts Medical Center; and James Motyka, PharmD, and Jon Campbell, PhD, of the National Pharmaceutical Council (NPC). 'The assumption that drug prices stay the same after launch distort a cost-effectiveness projection,' Dr. Campbell explained. 'The failure to accurately represent the cost to society of a drug or its comparator can have ripple effects on market competition and the ability to bring future innovations to market.' In their analysis of inflation-adjusted pricing data for 32 brand-name drugs that are most likely to be selected within the Drug Price Negotiation Program, the authors identified several insights to inform CEAs: -The average inflation-adjusted mean annual drug price change for commonly prescribed and large-market drugs was -4.7%. -Mean annual price changes for 25 (78%) of the studied drugs were negative, suggesting most had lower net prices at the end of the observed period once adjusted for inflation. -Modeling indicates that price change rates tend to moderate with more time since a drug's launch. The study also includes an interactive tool to help researchers incorporate these empirical models into CEAs alongside other evidence on price drops after the loss of exclusivity. The second study, " Identifying the Influential Dynamic Inputs in Cost-Effectiveness Analyses, " is the first work of its kind investigating the influence of specific dynamic inputs on cost-effectiveness findings. Informed by an advisory panel of economic modeling experts, this study calculated cost-effectiveness estimates for four stylized examples to explore how omitting dynamic inputs could misrepresent a treatment's cost-effectiveness. The paper is authored by Melanie D. Whittington, PhD, Joshua T. Cohen, PhD, and Peter J. Neumann, ScD, affiliated with CEVR at Tufts Medical Center and Tyler D. Wagner, PhD, and Jonathan D. Campbell, PhD, of NPC. 'Omitting key drug pricing dynamics risks misrepresenting a medicine's benefits versus costs over the lifecycle,' said Dr. Wagner. 'It is a disservice to patients if these analyses use the same inaccurate assumptions and inputs to assess all drugs.' Key findings from the modeling include: -For chronically administered drugs, the static (i.e. conventional) cost-effectiveness estimate was less favorable than the dynamic estimate by over 60%. Drug price changes after loss of exclusivity had the most impact on this difference. -For one-time administration drugs, the static estimate was less favorable by over 30%. In this case, impact on the difference in cost-effectiveness findings included price changes as well as the age at baseline and discount rate. -The inclusion of dynamic inputs had a greater impact in CEAs for chronically administered treatments than for one-time treatments, indicating that static models do not have the same level of CEA finding bias across all treatment types. 'Moving from static to dynamic inputs for CEAs is not a cure-all but will help prevent CEAs from misrepresenting certain cost dynamics that are a component of the comprehensive value of medicines,' added Dr. Campbell. About the National Pharmaceutical Council NPC serves patients and society with policy-relevant research on the value of patient access to innovative medicines and the importance of scientific advancement. We envision a world where advances in medicine are accessible to patients, valued by society, and sustainably reimbursed by payers to ensure continued innovation. For more information, visit and follow NPC on LinkedIn. Michael Pratt National Pharmaceutical Council (NPC) +1 202-695-5776 email us here Visit us on social media: LinkedIn YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Yahoo
01-04-2025
- Business
- Yahoo
The fine print: What you need to know about financing DoorDash orders through Klarna
Before you use Klarna to finance that DoorDash delivery, did you read the fine print? The popular food delivery app announced its partnership March 20 with commerce platform Klarna in a news release. The goal of the partnership between the two platforms is to give consumers "more ways to pay for groceries, retail, meals and more," the release reads. Klarna provides alternative payment schedules, such as pay-in-four and "buy now, pay later" options, to finance everything from cheeseburgers to designer purses. 'Our partnership with DoorDash marks an important milestone in Klarna's expansion into everyday spending categories. By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we're making convenience even more accessible for millions of Americans.' Fiscal responsibility: These New York areas rank among the best in the U.S. for smart money management According to a recent survey, out of 1,275 Americans who placed an order using DoorDash, 1 in 5 of those customers used Klarna to pay for at least one of their recent purchases when available. The survey also found that most respondents were using Klarna to pay primarily for takeout and groceries purchased through DoorDash. The majority of Klarna customers on DoorDash had credit card debt and lived paycheck-to-paycheck. Other findings from the survey include: 20% of recent DoorDash customers used Klarna, and 64% say they might in the future 23% of customers who opted for Klarna said it was because they "couldn't afford the total cost," and 22% of customers chose Klarna because any credit cards they had were "maxed out." Customers who were Gen Z were the most frequent users of Klarna on DoorDash. Customers will see Klarna as a new payment option when checking out from DoorDash, with the following options for payment: Pay in Full allows for customers to pay the full amount immediately using Klarna's payments platform. "Pay in 4" prompts customers to pay in "four equal interest-free installments." Pay Later gives customers the option to defer payments to a more convenient time, "such as a date that aligns with their paycheck schedules." Klarna's website also lists an option to "split any purchase at DoorDash" using a "secure, instantly created, single-use virtual card." Only customers aged 18 or older can use Klarna. In 2024, New York governor Kathy Hochul introduced proposed regulatory measures for "Buy Now Pay Later" lenders (such as Klarna) in the state budget. The measures would require such companies to obtain a license to operate in the state. The proposed regulations would also allow for New York to "limit late fees, force companies to report to credit bureaus and implement other fraud protections, much like those already required in the credit card industry," reporter Jon Campbell wrote for the Gothamist in 2024. A current version of the proposed regulations exist as Assembly Bill A6757. The bill was referred to the Assembly Banks committee on March 11. If you miss a Klarna installment, there are consequences. "If your payment is not registered by the last reminder due date, the debt is transferred to debt collection," the Klarna website says. If you can't pay on time, you do have the option to extend your due date once per the length of that particular order. Klarna's website explains that the company will email a customer if a payment is unsuccessful. "We'll also try one more time to collect it," an FAQ page reads. "If we can't collect it a second time, it will be added to your next payment along with a late fee of up to $7.00. The aggregate sum of your late fees will never exceed 25% of your order value at the time of purchase." According to John Egan, a personal finance expert for opting to use Klarna for DoorDash purchases is OK "as long as you pay them off as soon as possible." There's also the matter of accruing interest. "If you don't pay off these purchases during Klarna's interest-free period," Egan continues in a blog post for "then the DoorDash-ordered pepperoni pizza you bought with Klarna could cause some financial heartburn in the form of interest charges." This article originally appeared on Rockland/Westchester Journal News: DoorDash Klarna financing: What New Yorkers need to know
