• EBM and HTA for Healthcare Decision Making – The Time has Come!

    EBM and HTA for Healthcare Decision Making – The Time has Come!

    Health systems have developed at different speeds, and with differing degrees of complexity throughout the twentieth century, reflecting the diverse political and social conditions in each country. Notwithstanding their diversity, all systems, however, share a common reason for their existence, namely the improvement of health for their entire populations. To attain this goal a health system undertakes a series of functions, most notably, the financing and delivering of health services.

    Since available resources are limited, delivering health services involves making decisions. Decisions are required on what interventions should be offered, the way the health system is organized, and how the interventions should be provided in order to achieve an optimal health gain with available resources, while, at the same time, respecting people’s expectations. Decision-makers thus need information about the available options and their potential consequences. It is now clear that interventions once thought to be beneficial have, in the light of more careful evaluation, turned out to be at best of no benefit or, at worst, harmful to the individual and counterproductive to the system. This recognition has led to the emergence of a concept known as “evidence-based medicine” (EBM), which argues that the information used by policymakers should be based on rigorous research to the fullest extent possible.

    Health technology assessment (HTA) increasingly plays an important role in informing reimbursement and pricing decisions and providing clinical guidance on the use of medical technologies across the world. In addition to safety and efficacy information, health economic and outcomes research (HEOR) data are also receiving expanded attention in these assessments in many countries, due to payers seeking better value for money spent on treatments. HTA is now commonly viewed as a tool to assist evidence-based health-care decisions.

    EBM has been defined as “the conscientious, explicit and judicious use of current best evidence in making decisions about the care of individual patients”. The origin of this evidence-based approach can be seen in the application of clinical medicine delivered at an individual level. Pressure to base decisions on evidence has, however, been extended to other areas of health care, such as public health interventions and health care policy-making. In this context, evidence is understood as the product of systematic observation or experiment. It is inseparable from the notion of data collection. The evidence-based approach relies mainly on research, that is, on systematically collected and rigorously analyzed data following a pre-established plan.

    There are exciting new developments in basic science that could lead to targeted, highly effective and curative treatments. Health systems are improving their electronic records and recording health outcomes, which can be analyzed using structured, sophisticated analyses in real-time. There are also new collaborative approaches between healthcare providers and technology developers to enable evaluation of technologies in the health system before adoption or early in adoption to optimize use. There is a need and an opportunity to harness these developments and improve the effectiveness and efficiency of evidence production for new health technologies to input to HTA and inform decision making. Clinicians, managers, patients, and technology developers need to be involved to ensure that the process to a coverage decision is not only efficient but that it is also effective. To be effective, health services need to be organized to enable rapid and appropriate introduction of effective technologies and disinvestment of ineffective technologies. This suggests an additional responsibility for HTA and it would involve helping technology developers understand clinical and patient needs, evidence generation requirements, and limitations and helping health systems understand the potential and implications of new technologies and possible challenges of implementation.

    Therefore, to sum everything up, the evidence should be both efficient as well as effective in order to develop more agile and adaptive processes that help to broker alignment among technology developers and health systems (including healthcare professionals and patients). This suggests that HTA needs to innovate and be prepared to play a more active role to influence evidence production and help facilitate dialogue among stakeholders to optimize technology development and use.

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  • Orphan Drug Pricing and Reimbursement -Part II

    Orphan Drug Pricing and Reimbursement -Part II

    The growing cost of discovery and development of orphan drugs is having an overall impact on the patient access to orphan medicines. Orphan drugs, which are usually not covered by insurance systems are inaccessible to patients due to their high cost, and even when they are covered, patient cost-sharing (through co-payments or coinsurance) can still limit their access.

    Reimbursement of orphan drug is the most important factor determining patient access to orphan drugs given their high costs. Usually for the non-orphan drugs, the parameters considered by the HTA agencies are the clinical effectiveness and the cost effectiveness. For orphan drugs, along with clinical and cost effectiveness, other parameters such as unmet need, solidarity and human value are also considered.

    I have divided this post into 4 sub-topics w.r.t orphan drugs namely health technology assessment, co-payments, post-marketing surveillance and managed entry agreements.

    Health Technology Assessment (HTA) is “any process of examining and reporting properties of a medical technology used in health care, such as safety, efficacy, feasibility, and indications for use, cost, and cost effectiveness, as well as social, economic, and ethical consequences, whether intended or unintended”.Its aim is to inform public decision-making by providing an opinion with supporting evidence, taking account of all aspects of the topic concerned. The major considerations by the HTA bodies includes Quality Adjusted Life Years (QALY) gained w.r.t. the intervention and the cost effectiveness of the drug. Reimbursement agencies reimburse the drugs which are proved to be cost effective or/as well as clinical effective. For orphan drugs greater uncertainties exist for reimbursement due to lack of clinical efficacy data and not-so-clear availability of economic evidence. Fortunately, in some countries, orphan drugs are reimbursed despite of this due to various reasons varying from the unmet need to solidarity.

    Access to orphan drugs may be affected by considerable patient co-payment (copay) or coinsurance, which are out-of-pocket (OOP) costs for patients. In health insurance, copay is a fixed amount you pay for covered services, typically when you get the service. Copays differ from coinsurance (the percentage you pay for covered services, usually after reaching your deductible). Patient co-payments for prescription drugs can be important in some countries such as US, Canada and Switzerland; for instance, monthly co-payment may be as high as $90 for prescription medicines in the US or a coinsurance of approximately 30% of the drug’s cost.

    The requirement of the clinical evidence at the time of marketing approval can be minimized if post marketing surveillance programs are planned. The post marketing studies ensures easy and rapid access of these orphan drugs to the patients. Sorafenib, an orphan drug for treatment of renal cell carcinoma, was subjected to post-marketing surveillance to ensure its clinical efficacy in patients, following relaxed clinical evidence at time of approval.

    In order to fund overpriced medicines, such as orphan drugs, a precise provision known as managed entry agreements is into force which sanctions the manufacturer to enter into an agreement with the payer involving negotiations of performance targets based on expectable health improvements. These are usually for the drugs which are not reimbursed. Managed entry agreements are usually of two types: Performance based schemes and financial based arrangements.

    • Performance-based schemes aim to provide security of cost-effectiveness and link performance to reimbursement of (orphan) drugs.
    • Financial-based schemes exist to report trepidations of healthcare payers on the subject of cost and the budget impact of orphan drugs. Financial-based schemes take a variety of forms including ‘cost capping’ (beyond a cost threshold the drug is provided at a discount or at zero cost), utilization capping (any number of doses and/or cycles beyond an agreed amount results in financial consequences).

    In a nutshell, many countries have accepted number of regulations and policies for orphan drugs in the last two eras. While these may permit the availability and access to orphan drugs, there are serious differences between countries in terms of range and types of regulations and policies executed. The presence of marketing exclusivity rests critical to incentivizing R&D of orphan drugs but portrays risks, markedly monopolization and high prices for orphan drugs, which may limit patient access to these needed medicines. Countries like China and India still lack stringent regulations and policies for orphan drugs and rare disease, that can have adverse effects on the growing populations of these countries.

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