Data on Managed Care Discussed by Researchers at Harvard University (Insurance Switching and Mismatch Between the Costs and Benefits of New…

Gene Therapy Weekly

Data on Managed Care Discussed by Researchers at Harvard University (Insurance Switching and Mismatch Between the Costs and Benefits of New Technologies)

By a News Reporter-Staff News Editor at Gene Therapy Weekly -- A new study on Managed Care is now available. According to news reporting originating in Cambridge, Massachusetts, by NewsRx journalists, research stated, "Many therapies have immediate costs but delayed benefits. Recent and anticipated transformative therapies may exacerbate these challenges."

The news reporters obtained a quote from the research from Harvard University, "This study explored whether disconnects between short-term budget impacts and long-term costs and benefits, and among impacts on initial payers, downstream payers, and society, are expected for a range of such therapies and whether they are likely consistent or variable, with implications for potential policy responses. Modeling. We modeled the impacts of 5 hypothetical therapies affecting different patient types: curative gene therapy for a childhood disorder, highly effective hepatitis C virus therapy, disease-modifying Alzheimer disease therapy, and cardiovascular disease therapy for both rare genetic and higher-risk prior cardiovascular event populations. We constructed disease-specific models, modifying best-available Markov analysis estimates for standard-of-care state transition rates, utilities, and costs. We disaggregated total healthcare impacts into impacts on initial versus downstream payers, dividing payers into 3 types: commercial insurers, Medicaid, and Medicare. Although we found gaps between the impacts on initial and downstream payers in all examples, some substantial, the magnitude and reasons vary. As scientific advances generate transformative therapies with substantial structural disconnects between 'who pays' and 'who benefits,'creative approaches may be needed by manufacturers, payers, and others to ensure appropriate access to cost-effective therapies, adequate economic incentives for future development, and sustainable payer economics. Mechanisms may amortize high up-front costs over time, provide for transfers among payers, or a combination."

According to the news reporters, the research concluded: "Our research suggests that approaches should be tailored to specific disease and therapy characteristics to be effective."

For more information on this research see: Insurance Switching and Mismatch Between the Costs and Benefits of New Technologies. American Journal of Managed Care, 2017;23(12):750-757,175-209. American Journal of Managed Care can be contacted at: Managed Care & Healthcare Communications Llc, 666 Plainsboro Rd, Ste 300, Plainsboro, NJ 08536, USA (see also Managed Care).

Our news correspondents report that additional information may be obtained by contacting D. Cutler, Harvard University, Dept. of Econ, Cambridge, MA 02138, United States. Additional authors for this research include M. Ciarametaro, G. Long, N. Kirson and R. Dubois.

Keywords for this news article include: Cambridge, Massachusetts, United States, North and Central America, Managed Care, Technology, Therapy, Harvard University.