Oncology Drug Pricing Essay
ONCOLOGY PRESCRIPTION DRUG PRICING: Cancer medication prices have been increasing since 15 years and has been affecting the patients as well the American Healthcare System. Cancer treatments cost nearly 20% to 30% of total out- of- pocket expenses for the patient and a financial burden of $20000 to $30000 per year. I hereby present a few facts about prescription drug pricing in U.S.A for oncology[1] [2] [3] [4] [5] [6] [7] [8] [9]:-
• According to IMS Institute of Health Informatics, prescription drug spending in on oncology medications in USA was $39.1 billion in 2015 which was 18% more than previous year.
• Prescription drug pricing in oncology, will continue to rise due to availability of new treatments.
• According to Kaiser Group, new …show more content…
POSSIBLE STEPS TO LOWER COST OF CANCER DRUGS [10] [7]:-
• VALUE- BASED REIMBURSEMENT AND PRICING: It reflects to the reimbursement of medical care based on improved outcomes among the population. Its aim is to improve quality of care and reduce the rise of healthcare costs. Federal government also needs to consider price control measures especially for cancer medications by involving in fixing the price of a drug based on its value outcomes to the patient population. Pricing should be considered based on 2 metrics.
Quality adjusted life year (QALY): It is defined as number of years of life that could be added by an intervention. It considers gained life expectancy and quality of life.
Incremental Cost- effectiveness Ratio (ICER): It is defined as the ratio of differences in costs between 2 different treatments to the differences in quality adjusted life year between the 2 treatments.
Despite limitations, ICER per QALY is considered as one of the major metrics used for drug- approval process in some countries. In case of drugs for treatment for cancer in U.K, the desired ICER per QALY should be <$50000 per QALY. ICER per QALY allows physicians and patients to make informed decisions and comparisons between 2 kinds of
• According to IMS Institute of Health Informatics, prescription drug spending in on oncology medications in USA was $39.1 billion in 2015 which was 18% more than previous year.
• Prescription drug pricing in oncology, will continue to rise due to availability of new treatments.
• According to Kaiser Group, new …show more content…
POSSIBLE STEPS TO LOWER COST OF CANCER DRUGS [10] [7]:-
• VALUE- BASED REIMBURSEMENT AND PRICING: It reflects to the reimbursement of medical care based on improved outcomes among the population. Its aim is to improve quality of care and reduce the rise of healthcare costs. Federal government also needs to consider price control measures especially for cancer medications by involving in fixing the price of a drug based on its value outcomes to the patient population. Pricing should be considered based on 2 metrics.
Quality adjusted life year (QALY): It is defined as number of years of life that could be added by an intervention. It considers gained life expectancy and quality of life.
Incremental Cost- effectiveness Ratio (ICER): It is defined as the ratio of differences in costs between 2 different treatments to the differences in quality adjusted life year between the 2 treatments.
Despite limitations, ICER per QALY is considered as one of the major metrics used for drug- approval process in some countries. In case of drugs for treatment for cancer in U.K, the desired ICER per QALY should be <$50000 per QALY. ICER per QALY allows physicians and patients to make informed decisions and comparisons between 2 kinds of