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COMMENTARY Realigning Incentives for Developing and Pricing New Anticancer Treatments still cover the drug. The next company to introduce a drug, David H. Howard, PhD seeing that the first was able to charge $30 000, sets its price at $40 000, and the cycle continues. HE CENTERS FOR MEDICARE &MEDICAID SERVICES Although the introduction of sipuleucel-T will have only (CMS) proposed in late March that Medicare a small effect on total health care costs, the cumulative effect cover sipuleucel-T, a new therapy for patients of the continuous introduction of expensive treatments is Twith terminal prostate cancer. Three indepen- that Medicare spending is increasing at an unsustainable rate. dently conducted randomized controlled trials found that Any credible approach to reducing the rate of growth in sipuleucel-T extends survival by 3 to 5 months. But the spending must curb some combination of the introduc- price is $93 000 for a course of therapy. It is probably tion, use, and prices of new technologies. pure coincidence that the announcement occurred as The Patient Protection and Affordable Care Act (PPACA) Congress was locked in intense negotiations over the seeks to reduce costs by enrolling Medicare beneficiaries in budget, but few recent developments better
JAMA – American Medical Association
Published: Jun 8, 2011
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