LEVERAGING OUTCOME BASED AND PORTFOLIO AGREEMENTS TO GUARANTEE CLINICAL OUTCOMES- INNOVATIVE PAYMENT MODELS FOR HIGH COST ONE-TIME TREATMENTS

Author(s)

Madaan P1, Ortiz V2, Kostakou A3, Olid Gonzalez A3, Parkinson M3, Walsh K3, Chalmers M4
1Navigant, London, UK, 2Navigant Consulting, London, LON, UK, 3Navigant Consulting, London, UK, 4Navigant Consulting, dublin 14, D, Ireland

OBJECTIVES: One-time treatments (e.g. CAR-T, cell and gene therapies) have the potential for unique health improvements. However, their high cost combined with uncertainties regarding their long-term effectiveness and safety create unique challenges. Innovative payment models could manage these challenges. This study examines the challenges and opportunities of outcomes-based and portfolio agreements for manufacturers and payers in Europe.

METHODS: A systematic literature review was conducted to identify the types of innovative models utilized across Europe for one-time curative treatments, followed by qualitative interviews (n=15) and a survey (n=50) of payer stakeholders to ratify findings from the secondary research and determine factors important in the selection of preferred innovative payment models.

RESULTS: Payers expressed interest in outcomes-based agreements to mitigate uncertainties of long-term clinical outcomes (effectiveness and safety) and demonstrate manageable budget impact and cost effectiveness.

Payment models that are preferred and recently implemented include 1) portfolio-level outcomes-based model to guarantee a given clinical outcome across a range of treatments 2) pay-for-performance that link reimbursement with the achievement of predefined clinical outcomes for an individual patient 3) annuity on reduced net price enabling confidential discounted payments spread over pre-determined periods.

Several payment models, such as portfolio-level agreements (e.g., cladribine agreement with GWQ in Germany) and outcomes-based agreements (e.g., tisagenlecleucel agreement with GWQ in Germany and MoH in Spain, axicabtagene ciloleucel agreement in Germany, and Autologous CD34+ stem cell therapy agreement with AIFA in Italy), were identified.

CONCLUSIONS: Outcomes-based and portfolio agreements can facilitate access of high cost one-time treatments in Europe. Multiple factors such as plausibility of effect, outcome measures selected, and type of patient population impact the selection of outcomes-based agreement. Moreover, the preferred payment model is linked with the specific objections raised by a payer based on the role (national, regional, local) within the overall healthcare system.

Conference/Value in Health Info

2019-11, ISPOR Europe 2019, Copenhagen, Denmark

Code

PBI50

Topic

Health Policy & Regulatory

Topic Subcategory

Pricing Policy & Schemes, Reimbursement & Access Policy, Risk-sharing Approaches

Disease

Genetic, Regenerative and Curative Therapies

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