Print“Early diagnosis, evidence-based treatment and enhanced coordinated care have essentially turned some forms of the condition into chronic illnesses that can be managed longer-term.”
While better cancer detection and a generation of innovative new cancer therapies are boosting cancer survival rates, that progress is also inflating the amount insurers spend on cancer medicines, a new analysis finds.
Spending on cancer drugs could grow by as much as 15 percent per year through 2013, say Medco Health Solutions, a drug benefits manager in its annual report tracking drug utilization and spending.
U.S. cancer care costs are projected to climb from today's $124.6 billion per year to $207 billion per year by 2020, as oncology drugs are becoming more targeted, easier to administer, and more expensive. And until the FDA establishes an approval pathway for bringing biosimilar oncology drugs to market, oncology spending will continue to be dominated by expensive branded drugs, the report says.
The use of generic medicines in other indications has helped limit overall prescription drug spending, but no such relief is in sight for oncology drugs, says Medco. Generic versions of Gleevec and Revlimid, among the most prescribed cancer treatments, are still several years away. Even then, a wave on new oncology drugs awaits, with nearly half the current pipeline of biotechnology drugs in mid-stage development or later dedicated to oncology.
What's bad news for payers is good news for patients. “Early diagnosis, evidence-based treatment and enhanced coordinated care have essentially turned some forms of the condition into chronic illnesses that can be managed longer-term,” says Glen Stettin, Medco's chief medical officer. “Continued innovation, including companion diagnostic or pharmacogenomic testing, can help ensure the right person is getting the right drug at the proper dose and reduce waste.”
Diabetes medications for the fourth consecutive year were the largest driver of overall spending on prescriptions medicines, Medco found. Spending on insulin, hypoglycemic drugs, glucose-elevating agents and diabetic supplies rose 7.6 percent. Other key cost drivers included respiratory, rheumatological, neurological, and attention deficit hyperactivity disorder drugs.
Despite price increases associated with single-source brands, over the next few years, pharmaceutical plan spending growth will be shaped more by increases in utilization—more patients and more days of therapy—than other sources, Medco says. And while generic medicines will help offset costs, pharmacy benefit plans will need to take maximum advantage of them to offset the growing cost of growth in specialty drug spending.
May 20, 2011
http://www.burrillreport.com/article-cancer_drug_costs_rising_fast.html
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