Medicare, Reversing Itself, Will Pay More for an Expensive New Cancer Drug
By ROBERT PEAR
WASHINGTON — The Obama administration has decided that Medicare will pay for one of the newest, most expensive cancer medications, which costs about $178,000 for a standard course of treatment.
Patients, doctors, hospital executives and insurers have expressed concern about the high cost of prescription drugs, especially new cancer medicines and treatments tailored to the genetic characteristics of individual patients. Medicare officials recognized the cost and value of one such product, the anticancer drug Blincyto, by agreeing to make additional payments for it starting Oct. 1. The drug is made by Amgen for patients with a particularly aggressive form of leukemia.
The decision suggests a new willingness by Medicare to help pay for promising therapies that are still being evaluated. It is also significant because Medicare officials reversed themselves on every major scientific issue involved. After receiving pleas from Amgen and a dossier of scientific evidence, the officials agreed that the drug was a substantial improvement over existing treatments for some patients.
At issue are special “add-on payments” that Medicare makes to hospitals for new technology whose costs are not yet reflected in the standard lump-sum amounts that hospitals receive for treating patients with a particular disease or disorder.
In a preliminary decision in April, the Obama administration said it did not intend to pay extra for Blincyto because clinical studies were “not sufficient to demonstrate” that it substantially improved the treatment of Medicare patients with acute lymphoblastic leukemia, a cancer of the blood and bone marrow. Medicare officials said Amgen’s application was based on data from “a small sample group of patients whose age demographic is much younger than the age demographic of eligible Medicare beneficiaries.”
But in a final rule to be published in the Federal Register on Aug. 17, the administration says it received “additional information and input” from Amgen and other experts and now agrees with their arguments.
Walk-in clinics force big medicine to rethink
By Priyanka Dayal McCluskey and Taryn Luna GLOBE STAFF AND GLOBE CORRESPONDENT
When Christine Ryan’s ear was aching one recent afternoon, she didn’t head to the doctor’s office or emergency room; she went to her local CVS store in Cambridge.
Within 20 minutes, Ryan had been diagnosed with an ear infection and was picking up medicine and heading back to work. “This was the quickest visit I’ve ever had in my life,” the 24-year-old human resources professional said.
Consumers like Ryan increasingly are looking for faster and more convenient options to get basic medical care, and retailers like CVS are filling the gap with walk-in clinics and other services. That’s forcing traditional health care providers, from small doctors offices to big hospitals, to react.
At Atrius Health, a large medical group, more doctors are leaving their doors open until 8 p.m. Tufts Medical Center is taking online appointments for its emergency room. Several hospital networks are building walk-in clinics for urgent care. Doctors have started seeing patients through video chats. And apps are being built that will let consumers make appointments and view medical information from their phones, the way consumers already access so many other services.
“This represents a huge paradigm shift in health care,” said Normand E. Deschene, chief executive of Wellforce, the parent company of Tufts Medical Center and Lowell General Hospital. “The systems that are going to succeed are those that are going to embrace it because this is what the consumers want. Most industries follow what their consumers want. Health care should be no different.”
The Opinion Pages | EDITORIAL
California Is Proving That Health Reform Works
Californians got a double dose of good health care news late last month. The number of Californians who have trouble finding a doctor or paying their medical bills has sharply declined since the Affordable Care Act took effect. And premiums charged by private insurers have risen only modestly, contrary to warnings that insurers were likely to get double-digit premium increases.
In its latest survey tracking the experiences of California’s previously uninsured residents, the Kaiser Family Foundation reported that two-thirds of the uninsured had gained coverage through various programs, including the state’s Medicaid plan, employer-sponsored insurance and private policies bought on the new insurance exchange established by the state under the Affordable Care Act.
Those who remain uninsured in California rank health care costs as their top financial challenge, with 85 percent saying health insurance is difficult to afford, more than housing, gas or utilities. Among the recently insured, health care ranked fourth on their list of economic concerns, behind housing, utilities, and gas.
Meanwhile, Covered California, the state agency that runs the insurance exchange, announced that the average premium would rise only 4 percent next year, slightly less than the 4.2 percent increase for the current year.
California officials attributed the low rates to having a large number of enrollees (more than 1.3 million) in relatively good health, defying predictions that only the old and the sick would sign up. The state also benefited from a law giving the exchange power to decide which insurers can sell policies, which gives it leverage to demand lower rates. Since all insurers are required to provide a standard array of benefits and cost-sharing for various levels of coverage, consumers can focus on the two other issues of greatest concern: the price of the plan and whether it includes their preferred doctors.
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