Payer Difficulties in Assessing New Therapies

Payers: If you could have crystal-clear insights into the value of new therapies, what would that change for your organization? Payers face the constant challenge of determining which new therapies offer true breakthroughs and which represent an unjustifiable cost burden. Clinical evidence is often incomplete, patient outcomes uncertain, and the long-term value difficult to predict. Meanwhile, patient access barriers like high out-of-pocket costs or complex prior authorization requirements linger as constant frustrations, while complex coverage processes and affordability concerns further complicate decision-making for payers.

Challenges of Evaluating New Therapies:?

• Limited data can make it difficult to fully understand the effectiveness and safety of a new therapy, especially in real-world settings where patient populations may differ from clinical trial participants. Additionally, conflicting study results or a lack of long-term data can further complicate decision-making for payers and providers.
• Lack of transparency in the data and study methods can hinder the ability of payers and providers to assess the true benefits and risks of a new therapy. This can lead to uncertainty and skepticism among stakeholders, impacting their willingness to adopt the treatment.
• Rising costs associated with new therapies can also pose a challenge for payers and providers, especially if the value of the treatment is not clearly demonstrated. This can further complicate decision-making and limit access to potentially beneficial therapies for patients. In addition, the lack of standardized pricing and reimbursement mechanisms can create further confusion and barriers to access for patients. The annual price of a newly-launched cancer drug in the United States averaged $283,000 in 2022, a 53% increase from 2017, as reported by Reuters.
• The complexity of treatment pathways, including multiple steps, requirements, and potential side effects, can also deter stakeholders from fully embracing a new therapy. This can result in delays in implementation and ultimately hinder patient outcomes. Furthermore, the lack of clear guidelines for transitioning between different treatment options can add to the confusion and uncertainty surrounding new therapies. This can lead to suboptimal treatment choices and potentially negative impacts on patient health.

The Solution: Real World Evidence and Health Economics and Outcomes Research

Real World Evidence (RWE) and Health Economics and Outcomes Research (HEOR) can help fill the gaps in decision-making and provide valuable insights into real-world patient experiences and the economic impact of new therapies. This information can ultimately lead to more informed coverage decisions that prioritize both patient outcomes and long-term value.

By analyzing data from electronic health records, claims data, patient registries, and other sources, RWE and HEOR can help payers:

• Fill knowledge gaps: By providing real-world data on how new therapies perform in actual clinical practice, RWE and HEOR can help payers make more informed decisions about which treatments to cover. This can ultimately lead to better outcomes for patients and more efficient use of healthcare resources.
• Inform decision-making: RWE and HEOR can provide payers with valuable information on the comparative effectiveness of different treatment options, allowing them to prioritize coverage for therapies that offer the most benefit to patients. Additionally, these insights can help payers negotiate pricing and reimbursement agreements with pharmaceutical companies, ensuring that healthcare dollars are spent wisely.
• Optimize resource allocation: By utilizing RWE and HEOR, payers can make informed decisions on where to allocate resources to maximize patient outcomes and cost-effectiveness. This can help streamline healthcare delivery and ensure that patients receive the most effective treatments available within budget constraints.

Payers can utilize RWE to inform coverage and reimbursement decisions for new therapies. They value clinical outcomes the most, followed by health-related quality of life, methodologic rigor, resource utilization, and external validity. Payers are increasingly turning to RWE to evaluate value-based care outcomes and make more informed decisions about pharmaceuticals and therapies.

HEOR experts help payers by defining drug dosages, analyzing patient populations, creating health outcomes guides, determining pricing, and outlining reimbursement terms to ensure the best health outcomes at an affordable price for patients accessing new treatments. HEOR professionals also contribute insights on drug efficiency, safety, quality, and dosage, humanizing the development process and providing real-life insights on patient access. Pharmaceutical manufacturers, distributors, healthcare institutions, health insurance institutions, and government agencies can utilize HEOR services to make informed decisions based on real-world data.

Maxis Clinical: Your Partner in RWE and HEOR

Maxis Clinical offers expertise in designing and conducting RWE and HEOR studies, including patient-reported outcomes research, retrospective database analyses, and cost-effectiveness modeling, to help healthcare stakeholders make informed decisions. Our services include:

• RWE studies : We design and conduct RWE studies to provide insights into the real-world effectiveness and safety of new therapies.
• HEOR analyses : We perform HEOR analyses to assess the value of new therapies compared to existing standards of care.
• Data analytics : We provide data analytics services to help payers and pharmaceutical companies assess the effectiveness, safety, and cost-effectiveness of new therapies.

Partnering with Maxis Clinical can help you optimize resource allocation and improve patient outcomes. Ready to learn more about how RWE and HEOR can support your decision-making? Let's discuss how we can help – get in touch .

References:

New U.S. Cancer Drug Prices Increase 53 Pct in 5 Yrs: Report. (2022, November 4). Retrieved May 6, 2024, from https://english.news.cn/20221104/5dedff1319804be99578ad98f85d9ddd/c.html

Holtorf, A. P., Brixner, D., Bellows, B., Keskinaslan, A., Dye, J., & Oderda, G. (2012, December 1). Current and Future Use of HEOR Data in Healthcare Decision-Making in the United States and in Emerging Markets. Retrieved May 7, 2024, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4031700/