Exploring Approaches for Value-Based Reimbursement of Oncology Therapies October 3, 2017 ● Washington, DC
Exploring approaches for value-based reimbursement of oncology therapies October 3, 2017 ● Washington, DC Backgrounder Introduction Advances in cancer care over the last thirty years have resulted in improved outcomes for patients.1 Between 1970 and 2000, the five-year breast cancer survival rate increased from 75% to 90% and the one-year lung cancer survival rate increased from 34% to 45%; overall, the cancer death rate in the United States (US) dropped 13% between 2004 and 2013.2-5 More recently, new immunotherapies have offered better outcomes for particularly challenging cancers, including late stage melanoma.1 However, with these advances, spending has risen dramatically. In the US, cancer care accounts for nearly 30% of healthcare costs, totaling $87.8 billion in 2014.6-8 Furthermore, while the rate of increase in specialty drug prices in the US has slowed, spending continues to increase, with oncology treatments as the second and third highest reimbursed therapies in Medicare and commercial insurance, respectively.9 The proliferation of targeted immunotherapies and other expensive, innovative mechanisms of action (e.g., Chimeric Antigen Receptor (CAR) T-Cell Therapy) signal that cancer care spending trends are not likely to improve in the near future. At the same time, care is becoming more complicated, and the type of treatment that will be successful may not be the same for each patient. As a result, payment and reimbursement of care and therapy in the oncology space have been changing in the past few years to emphasize value and patient outcomes.10,11 Specifically, payers are engaging with providers to implement value-based care through alternative payment models (APMs), including episodic payments to help curb cost and optimize outcomes.
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