Policy change to save lives
“The association of higher out-of-pocket costs and lower survival were all driven by the Medicare patients, not the commercially-insured patients,” Goulart said. “If the findings hold true in larger studies, the implications of policy changes should be focused on the Medicare Part D program.”
What’s the issue with Medicare’s prescription drug benefit program? The federal government can’t negotiate Part D drug prices with drug companies, although other federal agencies, like the Department of Veterans Affairs can and do, and to great effect. Since the Centers for Medicare and Medicaid Services, or CMS, can’t negotiate a price for cancer drugs, the pharmaceutical companies get to set the price.
”Without a walkaway option from Medicare, the prices are based on what pharmaceutical companies consider a fair market price,” Goulart said.
And other restrictions stand in the way. Patients with Medicare can’t apply for third party assistance programs, although patients with commercial insurance can and do.
If they could, “they might receive the drug for free or at much lower costs,” Goulart said.
Instead, somebody who’s retired and has a tiny bit of money tucked away with access to these specialty drugs through Medicare Part D, will face much higher out-of-pocket costs.
“This population which is already poor to begin with — these are probably the ones who had lower survival,” he said.
To Goulart, it’s clear what needs to be to be done.
“It’s flawed legislation and needs to change,” he said. “CMS needs to have the bargaining power to negotiate drug pricing for all cancer drugs. We need to reform our copayment policies, as well. If we lower the costs of these medicines, patients may live longer.”
Newer drugs, higher prices
HICOR’s Dr. Gary Lyman and others from the Hutch, the University of Washington and Seattle Children’s collaborated on a trio of studies that showed patients are also taking pricier TKIs than they might need, even when a cheaper effective generic is available. The study was part of a larger collaboration between HICOR’s Lyman and Chennupati; pediatric cancer researchers Drs. Eric Chow, Jennifer Wilkes, Dr. Lena Winestone and Dr. Henry Henk of OptumLabs Cancer Research Collaborative.
Published in a research letter in JAMA Oncology, they showed a steady climb in the number of CML patients taking next-generation TKIs. The drugs — dasatinib, nilotinib, bosutinib and ponatinib — all prevent unregulated cell growth in this type of leukemia.
Unfortunately, a previous study showed TKIs are the largest driver of health care costs in patients with CML, representing 66% of the first-year spending for both Medicare patients and those covered by commercial insurance. Despite this, and the availability of the generic TKI, imatinib, many CML patients received a next-gen TKI, the team found. Further, many were switched from the generic to a next-gen TKI without the “molecular monitoring” needed to inform such a decision.
Lyman’s latest analysis showed CML patients are regularly “trading up” their TKIs: in 2010, 19% of CML patients opted for the newest drugs; by 2019, the figure had climbed to over half, 56%.
This is a problem, Lyman said, because “no study has yet shown patient survival is improved with the much costlier agents.” Lyman said new TKIs often have a higher rate of side effects, as well.
Imatinib, the first generic TKI, was released in 2016. Each daily tablet can be had for as low as $20, while the average next-gen TKI drug costs $350 per day.
Still, around one in four patients switched to a pricier TKI within their first of year of treatment. Between 2010 and 2018, use of these pricier drugs by the end of the first year of treatment went from 34% to 64%.
Are patients asking for them because they’re new? Are doctors using them for the same reason?
“Most patient rely on the recommendation of their oncologist who is influenced heavily by pharma detailing [a one-on-one marketing strategy used by pharmaceutical companies] and the desire to use the latest thing in their practice,” Lyman said, adding there’s “some evidence” pointing to a longer remission period with the next-gen TKIs.