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Differences in external price referencing in Europe: a descriptive overview.

Christine Leopold¹, Sabine Vogler, A K Mantel-Teeuwisse

¹Department of Health Economics, Gesundheit Österreich GmbH/Austrian Health Institute, Vienna, Austria. Christine.leopold@goeg.at

Health Policy (Amsterdam, Netherlands)

|October 22, 2011

Summary

Pharmaceutical external price referencing (EPR) is common in Europe, with most countries using it. Adjustments to EPR methods are ongoing, highlighting needs for clearer legislation and international information sharing on pricing strategies.

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Area of Science:

Health Economics
Pharmaceutical Policy
International Healthcare Systems

Background:

Pharmaceutical pricing strategies are crucial for healthcare system sustainability.
External Price Referencing (EPR) is a common international pricing policy.
Understanding national variations in EPR is essential for policy analysis.

Purpose of the Study:

To provide an updated description of pharmaceutical external price referencing (EPR) in Europe.
To conduct a comparative analysis of national EPR characteristics across European countries.
To identify trends and variations in the implementation of EPR policies.

Main Methods:

A review of country-specific Pharmaceutical Pricing and Reimbursement Information (PPRI) Pharma Profiles.
Analysis of profiles from the PPRI Network, focusing on predefined criteria.
Inclusion of data from 28 European countries regarding their EPR practices in 2010.

Main Results:

In 2010, 24 out of 28 analyzed European countries utilized EPR, with most having statutory rules.
Reference baskets typically included fewer than 10 countries, with higher-income nations referencing similar economies.
The most common strategy involved using the average price from basket countries (n=8); methodologies have evolved over the past decade (n=19).

Conclusions:

EPR remains a prevalent and actively adjusted pricing policy in Europe.
Improvements are needed in legislation for price revisions and handling unavailable products.
Enhanced formal information sharing among pricing authorities is recommended to share methodologies and experiences.