New therapies emerging on the cancer landscape, including targeted drugs, immunotherapies, and combinations of drugs, offer patients potential for improved outcomes, but often at a steep cost. For many cancer drugs that have long been on the market, sharp price increases and drug shortages threaten patients' access to needed therapies. Clinicians, patients, families, and healthcare systems increasingly must consider the financial risks associated with treatment options in addition to clinical benefits and risks. Solutions that ensure patients’ access to beneficial and affordable therapies require an evaluation of the drug pricing and payment landscape and the associated policies, practices, and market forces that shape strategies. An improved understanding of these processes could enable informed comparisons between treatment options based on efficacy, side effects, quality of life, and cost to patients.

In this third workshop in a series on cancer drug access and value, the President’s Cancer Panel will convene leaders and stakeholders across multiple sectors to identify key actions to support drug pricing and payment strategies that ensure patients’ access to high-value cancer therapies. Questions to be considered include the following:

• How can the value of a cancer therapy be determined?
• What factors affect pricing and payment practices for cancer drugs, and how do payers determine which drugs are covered?
• Are there approaches that could support transparency in cancer drug pricing and payment?
• What are the barriers to developing alternatives ways of pricing and paying for cancer drugs and how can these barriers be overcome?
• How could effective communication between clinicians (defined broadly) and patients be supported regarding treatment efficacy, benefits, harms, and costs? 

Presentations and moderated discussions among participants will inform the Panel’s recommendations in a formal report to the President of the United States after the conclusion of series workshops.

Meetings of the President’s Cancer Panel are open to the public.

Erin Aakhus, MD
Fellow
Leonard Davis Institute of Health Economics
Instructor and Assistant Fellowship Program Director
Division of Hematology-Oncology
Perelman School of Medicine
University of Pennsylvania

Anthony Barrueta, JD
Senior Vice President
Kaiser Foundation Health Plan, Inc

Carmella Bocchino, RN
Senior Advisor
America’s Health Insurance Plans

Randy Burkholder
Vice President
Policy and Research
PhRMA

Deanna Darlington
Government Affairs Director
Amgen, Inc.

Stacie B. Dusetzina, PhD
Assistant Professor
Pharmaceutical Outcomes and Policy
UNC Eshelman School of Pharmacy
UNC Gillings School of Global Public Health
UNC Lineberger Comprehensive Cancer Center
@DusetzinaS

Levi Garraway, MD
Senior Vice President
Global Development and Medical Affairs
Oncology
Eli Lilly and Company

Ann M. Geiger, PhD
Deputy Associate Director 
Healthcare Delivery Research Program
Division of Cancer Control and Population Sciences
National Cancer Institute
@NCI_AMGeiger 

Hadiyah-Nicole Green, PhD
Founder
Ora Lee Smith Cancer Research Foundation
@drhadiyahgreen

Clifford Hudis, MD, FACP
Chief Executive Officer
American Society of Clinical Oncology
@CliffordHudis

Scott Josephs, MD
Vice President and National Medical Officer
Medical Management – Clinical Performance and Quality
Cigna
@Cigna

David Lansky, PhD
President
CEO
Pacific Business Group on Health

Kim Marschhauser, PhD
Program Officer
Patient-Centered Outcomes Research Institute

Lee Newcomer, MD
Senior Vice President, Oncology
UnitedHealth Group

Caroline F. Pearson
Senior Vice President
Policy and Strategy
Avalere Health
@CPearsonAvalere

Vinay Prasad, MD, MPH
Assistant Professor
Oncology
Oregon Health & Science University
@vinayprasad82

Scott D. Ramsey, MD, PhD
Director
Hutchinson Institute for Cancer
Outcomes Research
Fred Hutchinson Cancer Research Center
@ScottDRamsey

Barbara K. Rimer, DrPH
Chair
President’s Cancer Panel
Dean and Alumni Distinguished Professor
UNC Gillings School of Global Public Health

Abby B. Sandler, PhD
Executive Secretary
President's Cancer Panel
Special Assistant to the Director
Rare Tumors Initiative
Center for Cancer Research
National Cancer Institute

Ameet Sarpatwari, JD, PhD
Assistant Director
Program on Regulation, Therapeutics, and Law (PORTAL)
Brigham and Women’s Hospital
Instructor in Medicine
Harvard Medical School
@AmeetSarpatwari

Andrew J. Schorr, MS
President and Co-Founder
Patient Power, LLC
@andrewschorr

Greg Simon, JD
Director
Biden Cancer Initiative

Josephine A. Sollano, PhD, MPH
Global Vice President
Outcomes & Evidence
Pfizer, Inc.

Owen N. Witte, MD
Member
President’s Cancer Panel
University Professor
University of California
Director
Eli and Edythe Broad Center of Regenerative Medicine and Stem Cell Research
University of California, Los Angeles

Yousuf Zafar, MD
Associate Professor of Medicine and Public Policy
Duke University School of Medicine
Director
Center for Applied Cancer Health Policy
Duke Cancer Institute

Emerging cancer therapies—including targeted therapies, immunotherapies, and combination therapies—are creating opportunities for more effective, potentially curative, treatments. However, these drugs often come at substantial cost, contributing to patients’ financial toxicity and straining system-wide healthcare resources. The President’s Cancer Panel is focusing on these issues in its 2016-2017 series of meetings, Ensuring Patients’ Access to High-Value Cancer Drugs.

The third and final workshop in the Panel series—held on March 27, 2017, in Philadelphia, Pennsylvania—convened experts in drug pricing and payment from the biopharmaceutical industry, insurance companies, healthcare organizations, and professional oncology organizations, along with patients and patient advocates, health economists, and other academic researchers. Participants reviewed key factors that affect pricing of and payment for cancer drug therapies, discussed what constitutes value in the context of cancer treatment, and proposed potential recommendations to maximize patients’ access to high-value cancer drugs while continuing to promote innovation in cancer drug development.

In the United States, drugs are purchased not by users and beneficiaries—namely, patients—but by third-party payers that often have limited leverage in price negotiations. Medicare is legislatively mandated to pay for all cancer drugs approved by the U.S. Food and Drug Administration (FDA), and many states require private payers to cover the costs of all or most cancer drugs. Further, patients often do not have all the information they need to make informed decisions about treatment.

Workshop participants discussed potential strategies for increasing patients’ access to high-value cancer drugs. Competition would increase and prices may decrease if generic drugs and biosimilars were brought to market more quickly. Some participants supported revisiting coverage mandates to make it easier for payers to negotiate prices, or, in some cases, withhold coverage based on a drug’s value (as occurs in some other countries, e.g., England). Benefit plans and payment models could be structured to promote utilization of high-value treatments (e.g., eliminate copays for highly effective drugs, increase copays for less effective drugs, reduce physician incentives to prescribe expensive drugs when less costly/similarly efficacious alternatives are available). Participants acknowledged the many challenges in defining value. The many stakeholders in this area—patients, physicians, payers, pharmaceutical companies—have different, and sometimes competing, priorities. Convening these stakeholders and encouraging open dialogue could assist in developing a shared framework for assessing value. Safe harbor policies that allow pharmaceutical companies and payers to discuss value and price during drug development also may be beneficial.

Participants agreed that strategies must be developed to reduce the burden of drug costs for patients. For example, caps on out-of-pocket expenses and other benefit designs that protect patients could be considered. Clear communication between patients and physicians about treatment goals and the expected outcomes of various treatment options is critical. These interactions could be facilitated by decision support tools that include information about costs in addition to treatment efficacy and side effects. Patients and physicians need access to more information about costs and potential clinical outcomes to enable informed decision making; payers—including Medicare—are potential sources for real-world data on patient outcomes.

The President’s Cancer Panel will consider input and proposed recommendations from this workshop and previous workshops in this series. The Panel’s recommendations for ensuring patients’ access to high-value cancer drugs will be presented in its 2017 Report to the President of the United States.

A detailed meeting summary can be accessed here.