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7 Sep 2011

Healthcare Reform May Have Larger Impact on Pharma than Expected

A report says the post-2016 U.S. pharmaceutical industry revenue impact of the Affordable Care Act will be 20 percent, which is larger the 3 percent estimates that were widely circulated before.

According to a report released by Oliver Wyman, the post-2016 U.S. pharmaceutical industry revenue impact of the Affordable Care Act (ACA) will be 20 percent, which is in dramatic contrast to the 3 percent estimates that were widely circulated when the ACA was signed into law.

 

The authors of the report, Oliver Wyman Life Sciences Partners Jerry Cacciotti and Mark Mozeson, cite five transformational forces of the ACA that will impact the healthcare system and directly impact pharma. Theses forces include: the shift to fee-for-value from fee-for-service and the role of providers; diminished economic viability of payers; the impact of the retailization of healthcare; increasing influence of the states vis-à-vis exchanges; and the increased liquidity of health information.

 

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