The New York Times ran an editorial Wednesday implicitly arguing that Medicare should consider withdrawing coverage for high-priced cancer drugs that have “modest" benefits, such as Avastin for metastatic breast cancer and Provenge for metastatic colon cancer. The Times makes the best possible case for rationing access to pricey cancer drugs, but the case ultimately falls short. Heres their argument:
Many patients with advanced cancer must feel great relief after last weeks decisions by Medicare to pay for two drugs that provide limited medical benefits. For these patients, even a few more months of life is beyond price.
The unaddressed issue, however, is whether public and private insurance should continue to pay the staggeringly high costreaching $88,000 and $93,000 in some cases for drugs that offer modest help to the typical patient. A prime driver of our escalating health care costs is the advance of medical technology and the understandable desire of patients and doctors to adopt the latest treatment. Sooner or later, as the nation struggles to contain health care spending, we may need to devise measures to determine whether very high-priced drugs provide enough medical benefit to warrant paying the bill.
Where to begin? High price tags make an easy target, but drug costs arent bankrupting the U.S. health-care system. Theyre only about 11-12 percent of total health-care costs; total direct costs for oncology care were about $125 billion in 2011 (thats all cancer costs, including drug costs). Thats a lot of money, but its not the lions share of the nations $2 trillion health-care tab.
Innovations in cancer treatment are also very valuable, because cancer is a disease that is rapidly fatal if its left untreated. A 2010 NBER paper found that from 1988 to 2000, life expectancy for all cancers increased by about four years, adding nearly $2 trillion in social value. Five-year survival rates for all cancers are now 66 percent, compared with 50 percent in the 1970s. Researchers have estimated that a reduction in cancer mortality of 1 percent would have a value of $500 billion; they estimated a complete cure would be worth a mind-boggling $50 trillion.
Pointing the finger at Provenge and Avastin ignores the tremendous strides that the U.S.s commitment to market-driven cancer innovation has made possible. Early stage breast cancer now has more than a 90 percent five-year survival rate, in part thanks to new drugs like Herceptin. Testicular cancer, once a death sentence, is now eminently treatable (think Lance Armstrong). Gleevec has largely transformed CML (a type of leukemia) into a serious but manageable chronic illness, with even better drugs available to patients who cant tolerate Gleevec.
Provenge is an extraordinary new type of treatment that harnesses a patients own immune system to help fight metastatic prostate cancer that has stopped responding to hormone treatment. It is one of the very few treatments available for patients in this condition, and it actually extends survival, with minimal side effects. A four month survival benefit is only “modest" if you ignore the fact that almost nothing else works.
Avastin is a groundbreaking drug for several types of cancer. The problem is that it only appears to help a small fraction of patients with metastatic breast cancer, and no one knowsyethow to identify those patients. But that is also largely true for many cancer drugs, which are used “off label" as doctors and patients desperately search for treatments that work.
Should we stop using these tools because they dont work as well as wed like? Or learn better how to use them? Given the choice, I think most Americans would prefer the latter option.
Markets are usually much better at incorporating new information than central government bureaucrats. Avastins use in metastatic breast cancer was already declining before the FDAs advisory board last week voted to remove its indication for metastatic breast cancer. Doctorssophisticated consumerswere already adapting their practices to the best medical evidence available before FDA firestorm began. Collecting and disseminating more information on “what works" is preferable to blanket policies that prevent experimentation and learning.
Cancer treatment is also shifting rapidly, and targeted treatments are the wave of the future. Companies know this and are rushing treatments to market that are matched to tumor variations present in individual patients. Hopefully, breast cancer patients who respond to Avastin may someday be identified using similar diagnostic tools.
But what about the high cost of new cancer drugs? As a society, we often spend more on higher need populationslike AIDS or cancer patientsout of a recognition that their disease is extraordinarily deadly and disabling. High prices also drive rapid innovation in the field. Provenge and Avastin are good, but the “second generation" drugs developed using similar principlesharnessing the immune system, choking off tumors ability to use the bodys vascular system for nutrientsare likely to be more powerful because researchers will learn from earlier experience.
Much of the high price of new cancer drugs is also attributable to the lengthy, risky, and expensive process for testing these drugs and submitting them for FDA approval. The FDA and Congress should be doing everything possible to streamline and accelerate cancer drug development to help bring those costs down. Cheaper and faster development will lead to more competition and likely lower prices.
Last but not least, many of todays high priced cancer drugslike Gleevecwill become cheap generics when they lose patent protection (as Gleevec will in 2015). In the interim, high prices fund new cancer research.
These are all better options than endorsing blanket coverage decisionswhich wont produce what we all want, which is better treatments for cancer.
Original Source: http://www.nationalreview.com/critical-condition/271313/high-priced-cancer-drugs-are-they-worth-it-paul-howard