An Overview of Approaches to Negotiate Drug Prices Used by Other Countries & U.S. Private Payers & Federal Programs

January 11, 2007 An Overview of Approaches to Negotiate Drug Prices Used by Other Countries & U.S. Private Payers & Federal Programs Governments in other countries use a range of approaches to limit the amount they pay to acquire drugs: Ceiling prices establish a maximum price manufacturers may charge for their products. Purchasers may sometimes negotiate more favorable prices directly with drug manufacturers   Reference prices use local or international price comparisons of drugs classified in a group as therapeutically similar to determine a single or maximum price for all drugs in that group   Profit limits control how much profit . . .