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New Report Discusses How Health Technology Assessment is Currently Used By International Reimbursement Authorities

Posted on: Tuesday, 18 December 2007, 06:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c77629) has announced the addition of Decision Resources Inc.'s new report: International Trends in the Use of Health Technology Assessment to their offering.

Introduction

Health technology assessment (HTA)--which typically involves the use of cost-effectiveness studies to evaluate the relative value of a new drug or medical technology--can play a key role in helping reimbursement authorities determine which medical treatments to reimburse. Authorities in Australia, Canada, and much of Europe have used elements of HTA as a factor in their reimbursement decisions for several years, and many other countries are now following suit. Most significantly, payers in the United States are increasingly interested in the potential that HTA holds in reimbursement decision making.

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Reimbursement authorities largely agree on the main methods of economic evaluation for new drugs and medical technologies. However, the increasing use of health economic data in decision making has highlighted several important issues. What are these issues, and what consequences do they hold for medical health companies?

In light of the use of HTA and economic assessment to help reimbursement authorities determine which medical treatments to include in their formularies, drug manufacturers must seek to make the most of their limited influence over the HTA process. What strategies can manufacturers pursue to ensure they maintain a role in the reimbursement decision-making process?

In recent years, leading pharmaceutical companies--including Janssen-Cilag and GlaxoSmithKline have responded to increasing cost-containment pressures in Europe by negotiating risk-sharing agreements with reimbursement authorities. Why did Janssen-Cilag and GlaxoSmithKline in particular pursue risksharing agreements? Under what circumstances can risk-sharing agreements prove benefi cial for drug manufacturers?

At present, relatively few reimbursement authorities require the use of quality-adjusted life-years (QALYs) in economic evaluations of new drugs and medical technologies. However, use of this measure is increasing.

Why are objections being raised to the use of this statistic?

A reimbursement authority's cost-effectiveness threshold is important because it indicates the maximum amount the authority is willing to pay for a unit of health gain. However, very few reimbursement authorities have set explicit cost-effectiveness thresholds. Which European country is an exception to this rule?

Scope

Health technology assessment: European and American definitions; the role of health economics and pharmacoeconomic studies in HTA; how HTA is currently used by reimbursement authorities in Australasia, Europe, Asia, Latin America, Canada, and the United States.

Methodological developments in HTA: synthesis of clinical comparisons for new medical drugs and technologies; cost-effectiveness of new techniques for subgroups; QALY; incorporating equity issues in reimbursement decisions; characterizing uncertainty in economic estimates.

Procedural developments in HTA: priority-setting; stakeholder involvement; defi ning the costeffectiveness threshold; the advent of conditional reimbursement.

Risk-sharing agreements: Janssen-Cilag's pricing agreement for Velcade; the U.K. Department of Health's pricing agreement with manufacturers of multiple sclerosis drugs; GlaxoSmithKline's flexible pricing agreements in Europe.

Outlook and implications: the world's embrace of HTA; Europe in the vanguard; the United State begins to join the party; drug manufacturers challenged by varied postmarketing data requirements across the world; pharmaceutical companies' adjustment to new reimbursement negotiations; the prominence of value-based reimbursement and the ascent of risk-sharing agreements.

Appendices: a detailed examination of key reimbursement and clinical assessment issues in each of four countries (England, Germany, the United States, and the Netherlands).

Executive Summary Strategic Considerations Stakeholder Implications Introduction What Is Health Technology Assessment? Use of Health Technology Assessment by Reimbursement Authorities Australasia Europe Asia Latin America North America Methodological Developments in HTA Synthesis of Clinical Comparisons Analysis by Patient Subgroup Estimation of Quality-Adjusted Life-Years Gained Incorporation of Equity Considerations Characterizing Uncertainty in Estimates Procedural Developments in HTA Topic Selection and Priority Setting Stakeholder Involvement The Cost-Effectiveness Threshold Conditional Reimbursement Linked to Further Research Outlook and Implications for the Pharmaceutical Industry Appendix A The National Institute for Health and Clinical Excellence - An International Role Model for HTA? Appendix B IQWiG--Anything but NICE? Appendix C Slow Adoption of Health Technology Assessment in the United States Academy of Managed Care Pharmacy Agency for Healthcare Research and Quality Drug Effectiveness Review Project Medicare Outlook Appendix D Going Dutch--HTA and Reference Pricing in the Netherlands

Sidebars International Cooperation on Health Technology Assessment Risk-Sharing Agreements Present New Opportunities - and Threats - for the Pharmaceutical Industry

Tables 1 Key Features of Pharmacoeconomic Guidelines in Selected Countries

Figures 1 Components of Health Economic Evaluation 2 Quality-Adjusted Life-Years Added by Treatment

For more information visit http://www.researchandmarkets.com/reports/c77629

Source: Business Wire

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