Introduction
New cancer therapies offer the hope of improved prognosis to patients with life-threatening disease. Over the past 5–10 years, a number of specialty treatments in particular have entered clinical practice in the United States (US) to provide better systemic therapy for advanced cancers that respond to few therapeutic alternatives. To date, however, such advances have been only modestly effective in extending life (Schrag, Reference Schrag2004; Schnipper et al., Reference Schnipper, Meropol and Brock2010).
Alongside the optimism generated by new advanced cancer drugs comes difficult trade-offs. The prices of many of these therapies exceed $25,000 a year and result in benefits measured in months (Meropol and Schulman, Reference Meropol and Schulman2009; Fojo and Grady, Reference Fojo and Grady2009). Consequently, patients are often faced with exorbitant costs and physicians are increasingly placed in the undesirable position of having to help patients decide whether the potential benefits warrant the financial strain that these medications may generate. Concern over the high costs and relative value of new cancer drugs are not only confined to physician offices, but also in discussions at influential meetings of the American Society for Clinical Oncology (ASCO; Meropol et al., Reference Meropol, Schrag, Smith, Mulvey, Langdon, Blum, Ubel and Schnipper2009) and on the pages of medical journals and the popular press. Moreover, such issues are being considered against the backdrop of recent health care reforms – from more general discourse on costs, access to care and obtaining better value from the stratospheric spending levels on health care to more specific proposals around the use of comparative effectiveness research (CER) and payment reform. The dramatic trade-offs proffered by these drugs extends beyond the national arena; indeed, their adoption has become a touchstone for broader health policy debates elsewhere, most notably in the United Kingdom (UK) (Jeffreys, Reference Jeffreys2007; Faden et al., Reference Faden, Chalkidou, Appleby, Waters and Leider2009; Department of Health, 2010; Chalkidou, Reference Chalkidou2012).
With increased attention worldwide placed on the cost of cancer care, the time is ripe to explore how cancer drugs are currently being valued in the US context. This article aims to address this issue, particularly in the case of end-of-life care, and is structured as follows. First, the article provides some context around these new therapies, followed by a discussion on costs and patient access. The article subsequently turns to outlining the current evidence on the value for money of advanced cancer drugs and then examines some of the technical, political and social challenges in assessing their value and considering such evidence in decision making. The article concludes with some preliminary thoughts on how to obtain greater value in advanced cancer care.
Waging the war on cancer
…the time has come in America when the same kind of concentrated effort that split the atom and took man to the moon should be turned toward conquering this dreaded disease. Let us make a total national commitment to achieve this goal.
President Richard Nixon, January 1971, State of the Union Address.
Eleven months later, President Nixon formalised the war on cancer with the passage of the National Cancer Act, an act designed to promote the discovery of new treatments for cancer and to encourage early detection and prevention of disease. More than three decades later, cancer remains an important cause of mortality and morbidity in the US. In 2007, cancer represented the second leading cause of death, accounting for 23.2% of all deaths, or roughly 563,000 people (Centers for Disease Control and Prevention (CDC), 2010). Today, ∼1.5 million new cases of cancer are diagnosed in the US annually (American Cancer Society, 2010).
However, the last three decades have witnessed important strides in understanding, preventing and treating the disease. Scientists have identified some of the genes responsible for cancer, discovered new chemotherapeutic and biologic approaches to treating the disease and developed new imaging techniques to detect cancer earlier. Accompanying these scientific advances have been equally important public health campaigns and educational programmes, which have led to improved screening rates and lifestyle changes (e.g. reduced smoking, increased physical activity) that help prevent the occurrence and reoccurrence of disease. Consequently, median survival rates have improved for many cancers, particularly breast cancer, colon cancer, prostate cancer and non-Hodgkin's lymphoma (American Cancer Society, 2010).
Despite these advances, however, there is significant debate over whether the war is truly being ‘won’ and, if so, at what cost. Criticisms generally centre on two closely related issues. First, there are concerns that medical progress in cancer care have predominately focused on the development of expensive treatments that only marginally prolong life and may reduce its quality (Epstein, Reference Epstein2005; Faguet, Reference Faguet2005). As intimated previously, many commentators have questioned the cost-effectiveness of recent cancer treatments and whether the high cost of such therapies is therefore warranted (Berenson, Reference Berenson2005; Faguet, Reference Faguet2005; Kolata and Pollack, Reference Kolata and Pollack2008; Shih and Halpern, Reference Shih and Halpern2008; Malin, Reference Malin2010). Critics often point to the fact that the US spends twice as much as any other country for the same overall survival results (Meropol and Schulman, Reference Meropol and Schulman2009) as evidence that value in advanced cancer care is suboptimal. Second, some argue that too much effort has been placed on developing such costly treatments, at the expense of prevention and early detection (Faguet, Reference Faguet2005). The following sections critically explore the first issue in further detail.
The price tag on progress: costs of and access to new cancer drugs
Expenditures on cancer care have nearly doubled over the last 20 years, in part as a result of the prices and rapid uptake of new agents and other technologies, including advances in imaging and therapeutic radiology (Meropol et al., Reference Meropol, Schrag, Smith, Mulvey, Langdon, Blum, Ubel and Schnipper2009; Tangka et al., Reference Tangka, Trogdon, Richardson, Howard, Sabatino and Finkelstein2010). In particular, spending on cancer drugs has risen 15% annually in recent years, with many approved medications carrying costs of $5000–$10,000 or more per month of treatment (Gatyas and Longwell, Reference Gatyas and Longwell2008; Schickedanz, Reference Schickedanz2010). Sales of cancer drugs are now second only to those of drugs for heart disease and estimates suggest that more than 40% of Medicare drug spending is for oncology agents (McNeil, Reference McNeil2007; Smith and Hillner, Reference Smith and Hillner2011). To be sure, scientific advances in oncology have not come cheap.
The growing economic burden associated with such treatments begs the question of why costs are so high. First, there are factors related to their supply and demand that contribute to high prices. Most new cancer drugs are biologics, which are more costly to produce than traditional medications and administered via infusion or direct injection, both of which involve substantial costs. The high cost of production is partly due to the escalating expense and inefficiencies of clinical trials and the time and resources dedicated to meet regulatory requirements (Rawlins and Chalkidou, Reference Rawlins and Chalkidou2011). In addition, the majority of therapies are patented and under other market exclusivities that limit competition in order to preserve incentives for research and development (R&D), thereby reducing competitive (downward) pressures on prices (Danzon and Taylor, Reference Danzon and Taylor2010).
Furthermore, as many of these drugs treat advanced disease that respond to few therapeutic alternatives, they are able to command premium prices without significantly deterring provider and patient demand (Goldman et al., Reference Goldman, Jena, Lakdawalla, Malin, Malkin and Sun2010). Neumann et al. (Reference Neumann, Palmer, Nadler, Fang and Ubel2010) and Nadler et al. (Reference Nadler, Eckert and Neumann2006) found that 67% and 78% of oncologists, respectively, endorsed the notion that all patients should have access to available and effective care regardless of costs. For many terminally ill patients, even when prices are high, demand for cancer drugs has been found to be largely inelastic, as they understandably place a high value on any additional life and are therefore willing to pay more for treatment (Goldman et al., Reference Goldman, Jena, Lakdawalla, Malin, Malkin and Sun2010).
Second, existing health insurance distortions and payment policies contribute to high costs. In principle, insurance creates a gap between the out-of-pocket prices that consumers pay and those received by manufacturers, with the difference paid by insurance. In cases where insurance coverage is insufficient to cover costs, many patients have supplementary insurance to cover the remainder or they forgo treatment if they cannot afford the co-insurance, and manufacturers often offer discounted drugs or assistance programmes for some patients without the ability to pay (Danzon and Taylor, Reference Danzon and Taylor2010). Consequently, patients and physicians have had limited incentives to demand cheaper drugs, thereby giving manufacturers little reason to constrain prices, although this may change due to the rising cost of care and growing levels of patient cost-sharing, as discussed further below.
In the case of Medicare, current payment policies for cancer drugs used under both Parts B and D benefits further encourage rising costs. With regard to the former, existing policies effectively reduce physicians’ margins,Footnote 1 which encourages manufacturers to charge high prices, especially at initial launch, to offer larger margins to physicians and indirectly influence use of costlier, more aggressive therapies (Jacobson et al., Reference Jacobson, O'Malley, Earle, Pakes, Gaccione and Newhouse2006; Danzon and Taylor, Reference Danzon and Taylor2010; Medpac, 2010). In contrast, reimbursement for cognitive services (e.g. end-of-life counselling) is dismally low (Smith and Hillner, Reference Smith and Hillner2010). While there is little to no evidence that physicians base treatment decisions solely on potential profit, when deciding between two equally efficacious treatments, oncologists tend to choose the more expensive therapy (Jacobson et al., Reference Jacobson, O'Malley, Earle, Pakes, Gaccione and Newhouse2006; Smith and Hillner, Reference Smith and Hillner2010). For drugs under Part D, pharmacy benefit managers contracted by Medicare have limited ability to negotiate price discounts for preferred formulary placement with certain classes of drugs, including those for cancer (Danzon and Taylor, Reference Danzon and Taylor2010). In fact, as of 2010, contracting private plans are required to include all drugs for conditions that are major or life-threatening (Bach, Reference Bach2009), regardless of cost or value for money. To that end, Medicare's overall standard for coverage is whether the drug is ‘reasonable and necessary’ for the diagnosis or treatment of disease; it is not permitted to refuse coverage of a drug based on grounds of either cost or cost-effectiveness.
A further source of upward pressure on costs is the extensive use of and payment for ‘off-label’ cancer drugs and treatments within Medicare.Footnote 2 While off-label use in cancer care is commonplace, with estimates indicating that 50–75% of drug or biologic therapy used to treat cancer is off-label (Soares, Reference Soares2005), use is higher in advanced cases when patients are no longer experiencing benefit from standard approved treatments, and increasingly involves expensive therapies (Sullivan et al., Reference Sullivan, Peppercorn, Sikora, Zalcberg, Meropol, Amir, Khayat, Boyle, Autier, Tannock, Fojo, Sideroy, Williams, Camporesi, McVie, Purushotham, Naredi, Eggermont, Brennan, Steinberg, Ridder, McCloskey, Verellan, Roberts, Storme, Hicks, Ell, Hirsch, Carbone, Schulman, Catchpole, Taylor, Geissler, Brinker, Meltzer, Kerr and Aapro2011). Some off-label use is supported by clinical data, although in many cases there is little supporting evidence of benefit, with accumulating evidence of harm (Giezen et al., Reference Giezen, Mantel-Teeuwisse, Straus, Schellekens, Leufkens and Egberts2008; Hecht et al., Reference Hecht, Mitchell, Chidiac, Scroggin, Hagenstad, Spigel, Marshall, Cohn, Stella, Deeter, Shahlin and Amado2009; Tol et al., Reference Tol, Koopman, Cats, Rodenburg, Creemers, Schrama, Erdkamp, Vos, van Groeningen, Sinnige, Richel, Voest, Dijkstra, Vink-Borger, Antonini, Mol, van Krieken, Dalesio and Punt2009). Nevertheless, off-label use of cancer therapies has endorsement from the National Cancer Institute (NCI) and, in some circumstances, the Food and Drug Administration (FDA). Moreover, the Centers for Medicare and Medicaid (CMS) must pay for off-label use if available medical compendia – reference guides Medicare relies on to determine which off-label uses of cancer drugs to cover – recommend use, even if such recommendations are based on scant evidence of effectiveness and safety.Footnote 3
Given that private plans generally follow Medicare's policies and coverage and reimbursement decisions, the aforementioned payment rules have a ripple effect across the whole of the health system, affecting physician treatment choices and distorting pricing on value and broader cost containment.
Third and finally, the high costs associated with advanced cancer care are also attributable to overutilisation of treatment or the utilisation of futile care. Several studies suggest that a substantial portion of the total cost of cancer care is for treatment delivered in the last months, weeks or days of life, and that much of this care is of little to no therapeutic benefit and potentially inconsistent with patients’ wishes (Lubitz and Riley, Reference Lubitz and Riley1993; Earle et al., Reference Earle, Landrum, Souza, Neville, Weeks and Ayanian2008; Zhang et al., Reference Zhang, Wright, Huskamp, Nilsson, Maciejewski, Earle, Block, Maciejewski and Prigerson2009; Mack et al., 2010). Existing evidence indicates that patient preferences for end-of-life cancer care vary widely (i.e. some patients want aggressive treatment until the very last day, others want home or hospice care with minimal medical intervention) and that existing national variations in careFootnote 4 largely do not reflect such preferences or differences in need (Barnato et al., Reference Barnato, Herdon, Anthony, Gallagher, Skinner, Bynum and Fisher2007; Earle et al., Reference Earle, Landrum, Souza, Neville, Weeks and Ayanian2008; Goodman, Reference Goodman2011; Goodman et al., Reference Goodman, Fisher, Chang, Morden, Jacobson, Murray and Miesfeldt2010, Reference Goodman, Fisher, Chang, Morden, Jacobson, Murray and Miesfeldt2011). Rather, regional differences in end-of-life care intensity are often guided by ‘supply-sensitive care’, resulting from uncertainty about how best to treat advanced cancer patients, practice styles of different health systems and physicians and the tendency of physicians to use the medical resources available to them, especially when it involves lengthening lifeFootnote 5 (Hollingsworth et al., Reference Hollingsworth, Zhang, Krein, Ye and Hollenbeck2010; Goodman et al., Reference Goodman, Fisher, Chang, Morden, Jacobson, Murray and Miesfeldt2011).
The growing price tag associated with these treatments is increasingly impacting patients and providers alike. Even Medicare beneficiaries and those with private health insurance can be faced with considerable out-of-pocket costs. Goldman et al. (Reference Goldman, Jena, Lakdawalla, Malin, Malkin and Sun2010) reported that although median patient out-of-pocket costs for new oncologic biologic therapies was only 1–2% of the total cost, the mean was 4–13% at the 90th percentile, and patient share of total cost ranged from 13% for imatinib to 51% for rituximab. For Medicare beneficiaries in particular, Faden et al. (Reference Faden, Chalkidou, Appleby, Waters and Leider2009) found that patient costs can total between $2900 and $6000 for three months of treatment to $7400 and $24,000 for an annual course of therapy. Such co-pays are particularly a concern for those with low or fixed incomes, who spend about a quarter of their annual income on such expenses (Langa et al., Reference Langa, Fedrick, Chernew, Kabeto, Paisley and Haymen2004; Berenson, Reference Berenson2005; Kim, Reference Kim2007). For uninsured and underinsured Americans, out-of-pocket costs can easily be four times higher; depending on the agent, annual therapy, for example, can soar to more than $100,000 (Faden et al., Reference Faden, Chalkidou, Appleby, Waters and Leider2009). Given that patients are likely to be taking multiple drugs, patient expenditures are presumably higher.
When confronted with high out-of-pocket expenses, some patients, particularly those without the ability to pay, may forgo or discontinue treatment (Szabo, Reference Szabo2008). Even those patients with some capacity to finance treatment may not undertake all recommended care in fear they will burden their families with unmanageable debt (Berenson, Reference Berenson2005; Kim, Reference Kim2007). Among those declaring bankruptcy for medical reasons, cancer is frequently the condition that precipitates the financial crisis (Himmelstein et al., Reference Himmelstein, Thorne, Warren and Woolhandler2009). Therefore, while increased patient cost-sharing may serve to control overall costs, there is evidence that it is associated with worse outcomes in the sickest and poorest patients, perhaps by causing lower use of necessary services (Hsu et al., Reference Hsu, Price, Huang, Brand and Fung2006). Growing patient cost burdens is also affecting physician treatment patterns. In a survey of oncologists (Neumann et al., Reference Neumann, Palmer, Nadler, Fang and Ubel2010), 56% and 84% reported that the cost of new cancer drugs and patient's out-of-pocket costs, respectively, currently influence which cancer treatment they recommend to their patients.
Evidence on the value for money of end-of-life cancer drug treatments
Given the substantial costs associated with advanced cancer drugs, their value for money is increasingly being questioned by patients, clinicians, payers and policymakers, with many observers arguing that these drugs, often used in the last months of life, are not cost-effective, in the sense of extending quality-adjusted life years (QALYs) at a reasonable price. Indeed, these treatments frequently have cost-effectiveness ratios that exceed (or well exceed) $100,000 per QALY, which is higher than the $50,000–100,000 per QALY threshold often suggested as denoting good value for money (Neumann et al., Reference Neumann, Sandberg, Bell, Stone and Chapman2000). Suggestions have been made for the threshold to be raised to take into account societal preferences and medical inflation (Ubel et al., Reference Ubel, Jepson, Baron, Hershey and Asch2003), and that cancer drugs (that increase life expectancy in the final month of life) in particular should be regarded differently than treatments that lower mortality risks only incrementally throughout an individual's entire adult life (Becker et al., Reference Becker, Philipson and Soares2007). As discussed in Chalkidou's article in this issue, the national health technology assessment body in the UK, the National Institute for Health and Clinical Excellence, recently extended its cost-effectiveness threshold for drugs aimed at end-of-life care under certain circumstances. The new policy was, in part, guided by societal preferences for the lives of terminally ill, mostly cancer, patients to be valued more than those suffering from other, potentially curable, chronic or acute conditions.
However, there is limited understanding of how these treatments are valued by different stakeholders in the US, although some evidence is starting to emerge. In a recent survey of oncologists on the value of cancer drugs, Neumann et al. (Reference Neumann, Palmer, Nadler, Fang and Ubel2010) found that they had an average implied cost-effectiveness threshold of roughly $300,000 per QALY. Interestingly, when later asked to generally define reasonable value for money, the majority (49%) indicated $50,000–100,000 per QALY, with ∼20% deeming a higher range of $100,000–150,000 per QALY as good value. A similar study (Nadler et al., Reference Nadler, Eckert and Neumann2006) demonstrated that 62% of oncologists believed that a life expectancy gain of at least two to four months justified the use of a hypothetical agent with a cost of $70,000 per year above the standard of care and another 20% believed four to six months would justify this cost.
Goldman et al. (Reference Goldman, Jena, Lakdawalla, Malin, Malkin and Sun2010) estimated patients’ willingness to pay for cancer drugsFootnote 6 to be equal to four times the total cost paid by the patient or his insurer. Annual net benefit ratios were slightly higher for those aged 65 years or older and female patients; no differences in willingness to pay were found by income, although there were acknowledged limitations in how income was imputed. Research by Becker et al. (Reference Becker, Philipson and Soares2007) and Slevin et al. (Reference Slevin, Stubbs, Plant, Wilson, Gregory, Armes and Downer1990) highlight that people who face imminent death, as in the case of advanced cancer patients, may place a much higher value on life-extending treatments than people for whom death is a remote risk. This may result in a willingness to spend any remaining wealth to live a few weeks longer, because the value of their wealth may lose much of its value at death.
Despite this initial evidence suggesting high valuation for advanced cancer drugs, there are qualifications to making deductions about their value for money. Importantly, oncologists and terminally ill patients may have different perceptions regarding economic value and benefit than other physicians, patients and broader society. For example, oncologists often practice in a context where grave situations in which treatments offer modest benefits are the norm and this arguably influences their perceptions of value (Nadler et al., Reference Nadler, Eckert and Neumann2006). Smith and Hillner (Reference Smith and Hillner2010) suggest this may indirectly cause oncologists to overvalue (and overutilise) costlier drugs, as they expect sufficient financial reward in return for routinely dealing with complicated treatments and the “fractured dreams and extreme suffering” of patients.
Furthermore, Nadler et al. (Reference Nadler, Eckert and Neumann2006) found that physician perceptions of economic value do not correlate highly with their own practice patterns. The majority (78%) of oncologists surveyed believed that patients should receive ‘effective’ treatment regardless of cost, but when queried whether a therapy that has been shown effective offered good value, most were unsure or disagreed, which suggests that they offer drug therapy to patients regardless of perceptions of value for money as long as the treatment is considered effective. In addition, physicians often either under- or over-estimate survival benefits and costs, indicating that some oncologists’ knowledge on the matter is lacking or that they have exceedingly high cost-effectiveness thresholds. How these findings comport with evidence that oncologists are increasingly considering costs in treatment decisions is worth further exploration.
Similar issues hold for advanced cancer patients, but are likely heightened given their lack of medical expertise, variable understanding of the risks, benefits and costs involved,Footnote 7 and the distress of facing death, which as stated earlier, may result in higher valuations of these therapies than would be elicited by healthy people or patients with acute or chronic conditions.
In addition, given increasingly limited resources to fund all health care, the value of cancer drugs should be considered from a broader societal perspective, which has yet to be explored in the American context, to ascertain how public valuations of these treatments might differ from cancer patients and their physicians. Determinations of their social value should be gauged against that of other interventions or policy priorities (inside and outside of health care), many of which may provide better value for money.
The road to value-based funding for and access to cancer drugs: technical, political and social challenges
It is clear that use of these drugs at the end of life often entails a complex cost-benefit trade-off for physicians, patients, payers and society alike, which will only get more challenging in the future with greater R&D activity in this area, increasingly expensive therapiesFootnote 8 (Schickedanz, Reference Schickedanz2010) and tighter health care budgets. In attempts to address the “value crisis in oncology” (Ramsey and Schickedanz, Reference Ramsey and Schickedanz2010), there have been recent developments towards better understanding and measuring the value of cancer drugs and advanced cancer care more generally.
In particular, in the last few years considerable attention and investment has been put towards CER. The Patient Protection and Affordable Care Act (PPACA) dedicated $1.1 billion to fund CERFootnote 9 and establish the public–private Patient-Centered Outcomes Research Institute (PCORI) to oversee the research. The aim of CER is to provide evidence of which interventions work in practice to allow physicians and patients, among others, to make better health care decisions. Cancer was one of the key priorities identified in early CER priority-setting processes (Institute of Medicine, 2009) and recent research suggests that there is demand for CER on cancer drugs. In particular, 79% of oncologists surveyed wanted more government research on their comparative effectiveness and 80% favoured greater use of cost-effectiveness data in coverage and payment decisions for these treatments (Neumann et al., Reference Neumann, Palmer, Nadler, Fang and Ubel2010).
While CER is arguably needed in the context of cancer drugs and other available interventions – less than half of medical care in the US is based on or supported by evidence about its effectiveness (IOM, 2007) – there are aspects of cancer drugs that introduce technical challenges to measuring their value (Mullins et al., Reference Mullins, Montgomery and Tunis2010). Due to the incentives inherent in the clinical research enterprise, randomised controlled trials (RCTs) are designed for specific purposes of regulatory approval and maximum market penetration, not to reflect the complexities of real-world patient care, where patients may have significant co-morbidities and other clinically mitigating factors, and they often do not collect economic information. Moreover, trials are rarely designed to compare a new drug against existing treatment alternatives to demonstrate relative therapeutic advantage (Smith and Hillner, Reference Smith and Hillner2010).
While these are not challenges unique to cancer drugs per se, for a variety of reasons the issues are exacerbated in the area of oncology. In cancer care, for example, clinical uncertainty in measuring comparative effectiveness leads to economic uncertainty, as for many cancers, there is no dominant treatment alternative and thus each attempt to treat incurs a separate cost, especially towards the end-of-life when additional, more aggressive lines of therapy are employed (Virgo et al., Reference Virgo, Vernava, Longo, Kissling, Lin and Johnson1995). It is also difficult to accurately capture patient preferences and assessments of impact on quality of life when, in advanced cancer, there are notable uncertainties about survival, side effects of drugs and personalised responses to care that frequently change along the course of treatment. Along these lines, existing preference-weighted quality of life measures (often used in QALY determinations) may not be sensitive enough to pick up changes in the health status of cancer patients or reflect preferences driven by specific characteristics or severity of the disease (Garau et al., Reference Garau, Shah, Mason, Wang, Towse and Drummond2010). In addition, the ubiquitous use of oncology drugs off-label makes it difficult to assess their value, as there is often insufficient or poor quality evidence from clinical trials to determine benefit, as previously discussed (Mullins et al., Reference Mullins, Montgomery and Tunis2010).
There are also political challenges to measuring value and, in particular, to applying resulting evidence in decision making on the availability and use of cancer drugs. The emotional debates preceding passage of the health reform legislation illustrated strong disagreements about what should constitute ‘value’ [i.e. whether both clinical effectiveness and costs (or other factors) should be considered], who should evaluate value and what role for CER in decision making (Garber and Sox, Reference Garber and Sox2010). Some legislators opposed using CER evidence for federal decisions about health insurance coverage, a stance supported by intense lobbying from various interest groups and dramatised with references to ‘death panels’, the dreaded R-word (rationing), and the heartless British NHS who leaves grandma to die to save money. These debates highlighted the political risk of giving PCORI even the resemblance of authority over health care decisions and, consequently, the PPACA prohibited the Institute from assuming the responsibility or authority to measure value and limited the ways in which CER can be used by Medicare (Garber and Sox, Reference Garber and Sox2010). Moreover, it barred Medicare from using cost-effectiveness as a factor in making coverage and reimbursement decisions.Footnote 10 Such provisions were largely supported by the general public (Gerber et al., Reference Gerber, Patashnik, Doherty and Cowling2010).
Research specific to advanced cancer drugs suggests oncologists concur; very few desire explicit resource allocation with government assuming a role in determining what care constitutes good value for money (Neumann et al., Reference Neumann, Palmer, Nadler, Fang and Ubel2010). While current provisions rendered CER more politically palatable and fostered stakeholder acceptance of PCORI, there is a risk that without some policy ‘teeth’, such research will have limited impact on clinical practice and costs.
Given the existing scenario where CER is restricted to more decentralised and implicit use by physicians, patients and other actors in the health system, there has been a surprising lack of discussion of how CER evidence on the value of treatments will get from ‘bench to bedside’. Simply making such evidence available will not likely be sufficient to ensure its consideration in patient care, including end-of-life treatment – that is, evidence is only as good as what you do with it (Freemantle and Drummond, Reference Freemantle and Drummond2010). First, in Neumann et al.'s study (Reference Neumann, Palmer, Nadler, Fang and Ubel2010) of oncologists, physicians reported insufficient time to consider available evidence, which may be heightened in end-of-life care when time to treat may be limited (Sullivan et al., Reference Sullivan, Peppercorn, Sikora, Zalcberg, Meropol, Amir, Khayat, Boyle, Autier, Tannock, Fojo, Sideroy, Williams, Camporesi, McVie, Purushotham, Naredi, Eggermont, Brennan, Steinberg, Ridder, McCloskey, Verellan, Roberts, Storme, Hicks, Ell, Hirsch, Carbone, Schulman, Catchpole, Taylor, Geissler, Brinker, Meltzer, Kerr and Aapro2011). Moreover, only 42% of oncologists said they felt well prepared to interpret and use such information in their treatment decisions. Second, even if one assumes that physicians and patients will have access to CER information on cancer drugs and use it in their decisions, there is evidence suggesting that the cost issue will not be adequately addressed. The most obvious reason is that as currently fashioned, CER evidence may not include the costs of therapy. Furthermore, patients are often reluctant to raise concerns regarding costs because they feel awkward addressing the topic and worry about how such discussions might affect quality of care (Alexander et al., Reference Alexander, Casalino and Meltzer2003; Kim, Reference Kim2007). Oncologists feel similarly uneasy, which stymies open discussion of costs with patients (Schrag and Hanger, Reference Schrag and Hanger2007; Neumann et al., Reference Neumann, Palmer, Nadler, Fang and Ubel2010). This discomfort may be more pronounced in the context of end-of-life treatment decisions, when it could feel that a life is being priced (Schickedanz, Reference Schickedanz2010), especially if costs have not entered into patient–physician discussions previously.
In addition, the existence of a “cancer taboo” may pose additional barriers to value-based decision making on cancer drugs. Cancer holds a privileged position – the “emperor of all maladies”Footnote 11 – in US health care, as evidenced by significant public and private research investment in understanding and treating the disease, a powerful industry, the multitude of influential interest groups and national associations with considerable political and financial capital, and, of course, the human element that almost every citizen knows of someone who has suffered from or died from cancer. One only needs to envision the bevy of organised sporting events in support of various types of cancer and the ubiquitous coloured rubber bracelets that have now become a global phenomenon to understand the extent of public support for ‘fighting the war’. In the context where available CER evidence demonstrates a lack of benefit against the costs, such influence, coupled with national sensitivities towards rationing, will render saying ‘no’ extremely difficult. Inevitably, payers will fear negative publicity and potential lawsuits, policymakers will want to avoid ‘disease politics’, and the entire CER enterprise could be placed under threat.
While not specific to advanced cancer drugs, tensions between evidence, access to treatment and political and social preferences played out in the recent breast cancer screening guidelines. The guidelines, if followed, would reduce the use of mammography among women in the age group of 40–49 years; substantial opposition ensued, which lead to a provision in the health reform legislation requiring the government to ignore the recommendations (Gusmano and Gray, Reference Gusmano and Gray2010). The experience of the UK, as discussed by Chalkidou (Reference Chalkidou2012), further underscores the difficulty in balancing such tensions. Even in a long-standing and centralised system of CER via National Institute of Health and Clinical Excellence, where the use of evidence to support access decisions is well known and formally integrated into policy, the Institute has faced significant negative media attention and public backlash to ‘no’ decisions for advanced cancer drugs, which arguably contributed to its change in policy for end-of-life treatments, the promulgation of a dedicated cancer fund and discussion of potential removal of the Institute's decision-making authority among government officials.
Conclusions
This article illustrates some of the key issues present in valuing end-of-life care in the US in the case of advanced cancer drugs, from the difficult trade-offs between their marginal health benefits and high costs to the challenges in assessing their value and applying such evidence in decision making. While policymakers, payers, physicians and patients will continue to face such issues into the foreseeable future, there are a number of initial steps that could be pursued to address existing evidence gaps and some of the outlined challenges.
First, as intimated earlier, additional research is needed to determine how these treatments are valued by different stakeholders. While evidence specific to oncologists has recently emerged, there is a lack of understanding around the preferences of policymakers, payers, patients and the general public regarding the use of these drugs and within the context of end-of-life care in particular. This would be a first step in better understanding perceptions of value, how to effectively define and measure it, and, more broadly, how best to manage the different needs and expectations of these various groups.
Second, although cancer drugs introduce unique technical challenges to assessing their value, there has been movement to address some of the limitations of RCTs through the use of pragmatic clinical trialsFootnote 12 and ‘coverage with evidence development’ (CED), which has been used by Medicare since 2005 to provide conditional coverage for promising medical technologies while additional clinical evidence is generated to reduce the uncertainty and evidence gap in valuing treatments (Cohen and Looney, Reference Cohen and Looney2010; Mullins et al., Reference Mullins, Montgomery and Tunis2010). Additionally, better incentives are needed to address the poor evidence base with regard to off-label use, which could involve a greater role for Medicare to strengthen evidence compendia and for developing methodological standards for evaluating off-label indications (Sox, Reference Sox2009). Other strategies to build the evidence base in oncology, particularly with regard to better understanding what (and how) cancer care is delivered to patients and its consequences, include use of outcomes databases and developing improved metrics to measure quality of care. These approaches could be potentially incorporated into existing physician payment schemes to incentivise development of evidence about what works and for whom in advanced cancer care. It could also help guide and encourage appropriate care at the end-of-life, with the aim to protect against over- and under-utilisation of care. UnitedHealthcare recently introduced a pilot programme incorporating such strategies, where oncologists can earn incentives for delivering quality care that results in controlling costs as well as for developing outcomes data (Burns, Reference Burns2011).
Third, although CER is focused on comparative effectiveness, it does not preclude consideration of costs. Garber and Sox (Reference Garber and Sox2010) argue that any CER research supported by PCORI and other sponsors should include data on use and costs to ensure that the most accurate and comprehensive information is available to decision makers. For example, CER-related legislation limits the use of cost-effectiveness analysis by certain federal programmes, but cost data could still prove valuable to Medicare and other stakeholders. To the latter, private entities (e.g. private insurers, hospitals, physician groups) and other government programmes could consider costs and perform or apply cost-effectiveness analysis based on comparative effectiveness results in their decisions. Insurers, in particular, could use such information to improve benefit design where patient cost-sharing for cancer drugs would not simply be based on cost, but value. Value-based insurance design (VBID), where co-pays are reduced for services when the clinical benefits exceed the cost and raised when the benefits do not justify the expenditure, has already been implemented by pioneering private payers to drive value in areas outside of oncology (de Souza et al., Reference de Souza, Ratain and Fendrick2012). As applied to oncology, this more nuanced approach would protect individual freedom of treatment choice, while maintaining controls over the total financial expenditure of health plans, and acknowledge and respond to patient heterogeneity across the entire spectrum of cancer care (Pearson and Bach, Reference Pearson and Bach2010; de Souza et al., Reference de Souza, Ratain and Fendrick2012; Drummond and Towse, Reference Drummond and Towse2012). Research by Wong et al. (Reference Wong, Hamilton, Egleston, Salador, Murphy and Meropol2010) suggests that patients may be willing to pay higher co-pays for more effective treatments.
Fourth, simply making CER evidence available on the relative effectiveness (and costs) of cancer treatments will not be sufficient to impact clinical decision making, especially in the absence of national policy or guidelines requiring implementation of such evidence in practice. The development of decision-support systems and aids, using available evidence of value, could be used to help oncologists make decisions; some available programmes can calculate the cost-effectiveness of a given intervention and help physicians better elicit patient treatment preferences (Garber and Sox, Reference Garber and Sox2010). Such tools could also be used to help oncologists to communicate with patients about the risks and benefits (and costs) of available treatment options, including end-of-life care, and realistic expectations regarding their prognosis and response to therapy. Available evidence suggests that oncologists infrequently speak early and openly to patients about their options, the possibility of death and ways they can make the transition to the prospect of dying (Wright et al., Reference Wright, Zhang, Ray, Mack, Trice, Balboni, Mitchell, Jackson, Block, Maciejewski and Prigerson2008; Huskamp et al., Reference Huskamp, Keating, Malin, Zaslavsky, Weeks, Earle, Teno, Virnig, Kahn, He and Ayanian2009; Keating et al., Reference Keating, Landrum, Rogers, Baum, Virnig, Huskamp, Earle and Kahn2010).
Greater patient–physician discussion of transitions to end-of-life care has been shown to correlate with significantly lower intensive care unit admissions, use of aggressive care, and costs, while promoting patient acceptance of terminal illness, caregiver quality of life, and reduced feelings of regret, depression and anxiety (Wright et al., Reference Wright, Zhang, Ray, Mack, Trice, Balboni, Mitchell, Jackson, Block, Maciejewski and Prigerson2008; Zhang et al., Reference Zhang, Wright, Huskamp, Nilsson, Maciejewski, Earle, Block, Maciejewski and Prigerson2009; Smith and Hillner, Reference Smith and Hillner2011). Moreover, existing evidence indicates that patients and their families want and need more information on what is available to those at the end of life and, more generally, how the US health system works in this context, and would prefer that such information come from physicians, not elected officials or politicians (Harrington and Smith, Reference Harrington and Smith2008; DoBias, Reference DoBias2011). Support from insurers and national medical associations could be beneficial for supporting shared physician–patient communication and decision making. For example, ASCO could develop guidance and educational opportunities to assist oncologists in considering and discussing costs with patients, as well as less expensive treatment options that might be more appropriate at the end of life. As a starting point, ASCO now recommends that oncologists educate patients on the financial realities of cancer care (Meropol et al., 2009).
Other steps that could be taken to enhance the value of advanced cancer care include more open and substantive debate about how best to care for terminally ill cancer patients. A recent survey conducted by the Regence Foundation and National Journal found that roughly 78% of Americans indicated that end-of-life treatment and palliative care should be part of the public discourse, and 93% believed that such decisions should assume a top priority for the US health system (DoBias, Reference DoBias2011). Moreover, the current use of community-based palliative care appears to fall short of what many patients want (Barnato et al., Reference Barnato, Herdon, Anthony, Gallagher, Skinner, Bynum and Fisher2007; Goodman, Reference Goodman2011; Goodman et al., Reference Goodman, Fisher, Chang, Morden, Jacobson, Murray and Miesfeldt2011). Key issues of discussion would include: Is aggressive drug therapy that marginally extends life at a high price tag the best course of action? If so, what constitutes a clinically important difference in survival – one month, two months, three months, longer? Authorities in France, for example, consider one month sufficient, while those in the UK, require evidence of at least a three-month survival benefit. Would greater value for money be obtained by helping patients more effectively transition to the end of life through high-quality (and earlier) palliative care? Existing evidence suggests that earlier access to palliative care can extend life, reduce suffering and save money (Temel et al., Reference Temel, Jackson and Billings2010).
In a poignant commentary in The New Yorker, Atul Gawande maintains that modern medicine has done well at staving off death with expensive and aggressive interventions, but has been considerably less successful in knowing when to stop and instead focus on improving the days terminal patients have left (Gawande, Reference Gawande2010). In addition to greater public discussion of these issues, progress on the latter might be attained through improving coordination of care between usual care and hospice, where both could be more effectively combined into integrated care models; payment reform for cognitive care, such as outlining and discussing advanced directives and other end-of-life planning and counselling; and, additional research on determining the optimal time to transition from curative to palliative care and ways to predict death more accurately.
Finally, aspects of value other than clinical and economic outcomes should also enter into public discourse about advanced cancer care – hope, choice, opportunity of treatment, compassion, equity and quality of life can all be considered domains of value for patients (and likely other stakeholders, such as their caregivers, physicians and society). For example, the importance of considering quality of life was highlighted in recent national poll data, which found that most (>70%) of Americans agree that it is more important to enhance the quality of life for seriously ill patients, even that it means a shorter life (DoBias, Reference DoBias2011). Of course, how value is defined, particularly from the patient point of view, will depend on personal circumstances and preferences and what therapies are available. For some patients, this will entail trying every available treatment to prolong life; for others, there may be greater value placed on simplifying their choices and eliminating unrealistic treatment options, while allowing them to live out the remaining months or years of their lives without aggressive therapy, and the health, emotional and financial implications that may result. Therefore, an important point of discussion is how to build consensus about when to give and when to omit particular treatments, while still allowing for personalisation of cancer care.
While the aforementioned steps may go some way to ensure the US achieves greater value in advanced cancer care, there remain broader challenges around the acceptability (and sustainability) of the high prices of cancer drugs and associated services and how much society is willing to spend on treating a small minority of patients and what we might forgo as a result. Resources are limited, especially given the current economic climate, and difficult decisions are required regarding the availability and affordability of health care. While this is an enduring problem, it is preferable to tackle it head on using the best available evidence and determined in a transparent, representative and equitable way.
Acknowledgements
Many thanks to Kalipso Chalkidou and Mike Drummond for helpful comments on earlier drafts of the paper and to an anonymous reviewer for thoughtful and helpful suggestions for improvement. Gratitude is also extended to Adam Oliver for inspiring collaboration on such an important and challenging health policy issue, and to colleagues who participated in the LSE-Columbia Health Policy Group seminar on end-of-life care in the US and UK in December 2010.
