Drugs with Incremental Cost Effectiveness Ratios ABOVE the Irish Threshold and Subsequent Price Negotiations
Author(s)
Kennedy C1, McCullagh L2, Adams R2, Trela-Larsen L2, Tilson L2, Barry M2
1St James Hospital, Dublin, Ireland, 2National Centre for Pharmacoeconomics, Dublin, Ireland
OBJECTIVES Drugs with an ICER above the Irish cost-effectiveness threshold may subsequently be reimbursed. Reimbursement may follow a HTA-informed price negotiation process and/or consideration of factors outside the assessment process described in the Irish Health (Pricing and Supply of Medical Goods) Act 2013. This study determined if price negotiations are more frequent for drugs for cancer, than those for orphan or other conditions. METHODS Drugs submitted to the NCPE for assessment between 2012-17 with an ICER above the threshold of €45,000/QALY which were subsequently reimbursement were included. The occurrence of price negotiations was determined from publicly available information on the NCPE website and through direct communication with the Corporate Pharmaceutical Unit. The details of the prices negotiated or other commercially sensitive information were not available. The percentage of drugs for cancer (Cancer) with a price negotiation was compared to the percentage of drugs for orphan diseases (Orphan) and all others (Non-cancer/Non-orphan). RESULTS Forty-three drugs were included: Cancer (n=13), Orphan (n=12) and Non-cancer/Non-orphan (n=18). A price negotiation took place for 74% of these drugs with the following breakdown: Cancer 62%, Orphan 67%, Other 89%. Analysis did not identify a therapeutic group most likely to have a price negotiation (comparing Cancer and Orphan χ2 = 0.071, p = 0.790; Cancer and Other χ2 = 0.230, p = 0.072; Orphan and Other χ2 = 2.222, p = 0.136). CONCLUSIONS Based on this analysis drugs for cancer were not more likely to enter a price negotiation process compared to those for orphan diseases or other categories. Where a drug was subsequently reimbursed without a price negotiation, factors other than cost-effectiveness may have been more heavily weighted in the decision-making process. The implications of this for the health service would be useful to explore further.
Conference/Value in Health Info
2020-11, ISPOR Europe 2020, Milan, Italy
Value in Health, Volume 23, Issue S2 (December 2020)
Code
PMU65
Topic
Health Policy & Regulatory, Health Technology Assessment
Topic Subcategory
Decision & Deliberative Processes, Public Spending & National Health Expenditures, Reimbursement & Access Policy
Disease
Oncology, Rare and Orphan Diseases