Evolution of willingness to pay in cost-effectiveness countries United Kingdom, Australia, Canada and Sweden
Lindsay Kreill, Emilie Neez
May 2024
Willingness to pay for new medicines has steadily declined in real terms in countries that incorporate cost-effectiveness thresholds in their pricing and reimbursement (P&R) processes. Nations such as the UK, Australia, Canada, and Sweden have not adjusted their thresholds for inflation since their introduction in the 1990s and early 2000s, effectively reducing their willingness to pay for innovation by 25-50%.
In the UK, this challenge is compounded by the weakening pound and industry-wide clawbacks, further constraining price and revenue. To ensure the sustainability of medical innovation, these thresholds must evolve to align with the current economic landscape.
