New Medicare Technology Add-On Payment Could Be Used As A Market Support Mechanism To Accelerate Antibiotic Innovation

  07 December 2021

Despite growing antibiotic resistance, the clinical drug development pipeline for antibiotics has been sparse largely because of an unsustainable business model. We illustrate three models to accelerate antibiotic development, using Medicare new technology add-on payments as a market support mechanism. The first two models subsidize drug development for Medicare beneficiaries, and the third model applies a payment for every patient with a resistant infection to essentially create a funding pool. We found that the reimbursement required to sustain research and development would range from $637 to $121,365, depending on the payment model and the incidence of the resistant infection in question. With a $300 million public research subsidy, the payment for an antibiotic would drop to between $273 and $10,396 per course. Our market support model could increase the likelihood of attracting private investment for antibiotic development.

Further reading: Health Affairs
Author(s): Neil Gandhi and Kevin A. Schulman
Smart Innovations  
Back

OUR UNDERWRITERS

Unrestricted financial support by:

Antimicrobial Resistance Fighter Coalition





Technology Database

Display your AMR Technology, Product and Service

Suppliers and Users of Technologies, Products and Services benefit from CAPI.
CAPI (Continuous AMR Partnering Initiative) unites Suppliers and Users worldwide with the aim to add to the curbing of AMR.

Read more and make your own Technology Page >>
What is going on with AMR?
Stay tuned with remarkable global AMR news and developments!