Indication Based Pricing and Reimbursement
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1 Indication Based Pricing and Reimbursement Francis Arickx National Institute for Health and Disability Insurance Belgium Conditional Reimbursement Chapter IV TARDIS ERP electronic patient record virtual registries all indications (effective) evidence reimbursed authorized (MA)/ susceptible for reimbursement clinical practice ISPOR Barcelona, November 12 th 2019 Indication Based P & R 2 1
2 Named Patient Based Reimbursement Special Solidarity Fund Safety Net Solution.. ISPOR Barcelona, November 12 th 2019 Indication Based P & R 3 Managed Entry Agreements Article 81/111 contracting value based performance based MARKETING AUTHORIZATION procedure reimbursement claim evaluation day 0 day 90 contract negotiations REIMBURSEMENT proposal decision day 150 day 180 Commission for Reimbursement Min ECONOM. AFF. procedure pricing Bundled Contracting companies indications BeNeLuxA Initiative ISPOR Barcelona, November 12 th 2019 Indication Based P & R 4 2
3 Indication Based Pricing and Reimbursement Value Based Pricing and Reimbursement Outcome Based Preformance Based How well does the solution work? versus Indication Based How big is the problem? Accountability for choices/priorities made.. Willingness to pay/invest? Shift Risk Minimisation to Risk Sharing ISPOR Barcelona, November 12 th 2019 Indication Based P & R 5 Decision algorithm for new indications Modification cfr art. 38 of RD 21/12/2001: Added Therapeutic Value New indication Paediatric yes Claimed by company AND granted by CTG/CRM (voted by 50%+1 of voting members) no Claimed by company but rejected by CTG/CRM (voted by 50%+1 of voting members) OR No added therapeutic value claimed by company Situation C Situation A Impact on pharmaceutical expenditure (budget impact line 1) as acknowledged 1 by CTG/CRM < 2,5 million/year in the first 3 years AND < /patient/year in the first 3 years (budget impact line 1) Situation B Impact on pharmaceutical expenditure (budget impact line 1) as acknowledged 1 by CTG/CRM > 2,5 million/year in the first three years or > /patient/year in the first 3 years (budget impact line 1) pharmaco-economic evaluation Optional Situation D Considered as cost-effective 2 by CTG/CRM (motivated and documented) in new indication 3 Situation E Considered as not cost-effective 2 by CTG/CRM (motivated and documented) in new indication 3 Not available Situation I Situation H Situation F CTG/CRM proposes a new cost (Y ) based on the evaluation of the 5 criteria Incremental impact Incremental impact as defined in Article 4 of the RD 21/12/2001, motivated and documented by Incremental impact on pharmaceutical budget (budget impact on healthcare budget on healthcare budget the CTG/CRM, with a special focus on the items cost-efficiency and the line 2) in the first 3 years as acknowledged by CTG/CRM (budget impact line 3) (budget impact line 3) incremental budget impact, to limit the incremental healthcare expenditure < 2,5 million/year in > 2,5 million/year in impact to an acceptable 5 level in the new indication. The new list price is no the first 3 years the first 3 years determined by the weighted average based on the budget impact including the acceptable cost for each indication. Situation J In case the cost cannot be achieved by a list price decrease, a temporary Situation G Yes or uncertainty 4 reimbursement agreement can be negotiated within the Working Group CTG/CRM proposes a new cost (Y ) based on the evaluation of the 5 criteria Article 81. as defined in Article 4 of the RD 21/12/2001, motivated and documented by the CTG/CRM, with a special focus on the item incremental budget impact, Incremental impact on healthcare budget (budget impact Neutral/Savings to limit the incremental healthcare expenditure impact to an acceptable line 3) in the first 3 years as acknowledged by CTG/CRM level in the new indication. In case of a definitive reimbursement, if Y is Situation M lower than Y, then the maximum price decrease is 20%. The new list price is determined by the weighted average based on the budget impact including no Situation K the acceptable cost for each indication. Yes or uncertainty 4 In case the cost cannot be achieved by a list price decrease, a temporary reimbursement agreement can be negotiated within the Working Group Article 81. Situation L CTG/CRM proposes a new cost (Y ) based on the evaluation of the 4 criteria as defined in Article 4 of the RD 21/12/2001, motivated and documented by the CTG/CRM, with a special focus on the item cost of the 1: The term acknowledged means in this context that the impact comparator therapeutic option, to limit the incremental healthcare expenditure impact to an acceptable level needs to be motivated and documented by the CTG/CRM in the new indication. The new list price is determined by the weighted average based on the budget impact No price/net cost decrease 2: evaluated/motivated on a case-by-case basis including the acceptable cost for each indication. In case the cost cannot be achieved by a list price decrease, a 3: the ICER threshold is relative to the pathology concerned temporary reimbursement agreement can be negotiated within the Working Group Article 81 for an indication 4: uncertainty if product or comparator with T reimbursement for which there exists a therapeutic or social need. 5: if no incremental budget impact, no price decrease Budget impact lines: Line 1: impact of new indication on pharmaceutical budget Line 2: incremental impact of new indication on pharmaceutical budget Line 3: incremental impact of new indication on healthcare budget ISPOR Barcelona, November 12 th 2019 Indication Based P & R 6 3
4 KCE (Belgian health care knowledge centre) A multi-criteria decision approach for the appraisal of unmet needs: A pilot study vidence assessment OUTPUT: 2 rankings : 1 for therapeutic need 1 for societal need List of ranked needs Therapeutic need Societal need Total weighted score Total weighted score anking Therapeutic need anking ocietal need ISPOR Barcelona, November 12 th 2019 Indication Based P & R 7 Nineteen criteria and six conditions for reimbursement of interventions in health care Reimbursement in health care: an agenda for change (King Baudouin Foundation final report ) ISPOR Barcelona, November 12 th 2019 Indication Based P & R 8 4
5 HOW? 9 questions criteria weighting MEDICAL VULNERABILITY Max score Impact on life expectancy? 3 Impact on quality of life? 5 Rarity? 2 Disadvantages actual treatment? SOCIAL VULNERABILITY Gender: Pregnant women 1 Age: children 1 Patient s dignity undermined? 1 30 SOCIETAL IMPACT Societal resources (human/financial) required? 1 Public health issue? 1 20 ISPOR Barcelona, November 12 th 2019 Indication Based P & R 9 Spinal muscular atrophy (SMA) Amyotrophic lateral sclerosis Recurrent glioblastoma Pancreatic cancer BRCA+ Mesothelioma (L2) Duchenne muscular dystrophy Selective early removal of eschar in children with deep thermal burns Acute Lymphocytic Leukemia (ALL) Metastatic uveal melanoma Acute Myeloid Leukemia (AML) FLT3 + Metastasized Non-Small Cell Lung Cancer T790m+ (2L) Recurrent and/or metastatic squamous cell carcinoma of the head and neck (SCCHN) Advanced metastatic gastric cancer HER2 + (L2 and + ) Serious bleedings and coagulopathy with fibrinogen deficiency Primary progressive multiple sclerosis Osteogenesis imperfecta Non-Small Cell Lung Cancer ALK + in progression after crizonitib Metastatic breast cancer ER+/HER2- Non-Small Cell Lung Cancer PD-L1+ (L3) Metastatic breast cancer BRCA+ Non-Small Cell Lung Cancer KRASm+ Recurrent or refractory chronic lymphocytic leukemia (17p del R/R CLL) Aggressive systemic mastocytosis (ASM) Non-Small Cell Lung Cancer (L2) Myasthenia gravis Lysosomal acid lipase deficiency Lupus nephritis Sporadic inclusion body myositis (sibm) Periodic fever syndromes (HIDS, TRAPS, crfmf) Alzheimer Non-Hodgkin Lymphoma (L1) Chronic hepatitis C with stage 4 5 chronic kidney disease Emergency treatment of known or suspected opioid overdose Alpha-1 antitrypsin deficiency (AATD) Refractory partial onset epilepsy with or without secondarily generalized tonic-clonic seizures (SGTCS) Clostridium difficile infection (recurrence prevention) Hypogammaglobulinemia (HGG) by solid organ transplantation Hidradenitis Suppurativa Non-infectious uveitis Hypoparathyroidism life threatening result QOL result rarity result ISPOR Barcelona, November 12 th 2019 Indication Based P & R 10 5
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