“WOULD YOU LIKE AN ALL-INCLUSIVE LUXURY HOLIDAY WITH FIRST CLASS FLIGHTS TO EGYPT WITH YOUR SOVALDI PRESCRIPTION” - INNOVATIVE COST-SAVING SOLUTIONS FOR US PAYERS
Author(s)
Macaulay R, Focsa S
PAREXEL, London, UK
Presentation Documents
OBJECTIVES: Gilead implemented a tiered global pricing strategy for SOVALDI where the price reflects a county’s ability to pay; a 12-week treatment course in the US costs $84,000 versus $840 in India, Egypt and Brazil. SOVALDI has generated some strong payer outcry as its price combined with the large patient population results in a substantial budget impact. This research aimed to evaluate how it could be money-saving for US insurers to reimburse patients for luxury holidays to Egypt where SOVALDI is available at a 99% discount. METHODS: On the 26th November 2014, prices were sourced for the Fairmont Cairo 5-star hotel alongside first-class flights on Emirates airline for trips at the following weekend (Friday 28th to Sunday 30th November) reflecting the potential need for prompt commencement of treatment following diagnosis. RESULTS: The most expensive suite at the Fairmont Cairo was the 233m “Diplomatic Suite King,” overlooking the Nile at $10,000 a night for 2 people. First-class flights for 2 persons leaving on the 28th November and returning on the 30th would cost $42,754. Therefore, US insurers could afford to send hepatitis C patients along with a friend/partner on a luxury weekend break to the most expensive suite in a 5-star hotel in Cairo to collect their SOVALDI prescription for a total of $63,594. This means that insurers could give the patient an additional $10,000 in spending money and still make cost-savings exceeding $10,000, as compared to having SOVALDI dispensed in the US. CONCLUSIONS: The availability of high-cost therapeutics in other countries at a fraction of the price that it costs in the US, offers opportunities for US payers to save costs whilst simultaneously offering quality-of-life improving vacations for patients. Is it feasible to offer patients such options? If so, could increasing international price arbitrage for pharmaceuticals open a new market?
Conference/Value in Health Info
2015-05, ISPOR 2015, Philadelphia, PA, USA
Value in Health, Vol. 18, No. 3 (May 2015)
Code
PIH42
Topic
Health Policy & Regulatory, Patient-Centered Research
Topic Subcategory
Public Spending & National Health Expenditures, Stated Preference & Patient Satisfaction
Disease
Multiple Diseases