This description relates to assessing pharmaceuticals.
Drug costs are skyrocketing, at rates much greater than the value of the improved benefits they provide. The costliest drugs—those most responsible for the growth in total pharmaceutical spending—are so-called “specialty drugs,” drugs for relatively small patient populations of people suffering from severe diseases such as multiple sclerosis, rheumatoid arthritis, prostate cancer, and hepatitis C. Few specialty drugs (we sometimes use the words drugs and pharmaceuticals interchangeably) face competition from generic drugs (that is, for example, drugs that contain the same active ingredient as, and are approved by the FDA as therapeutically equivalent to, a branded drug, but which lack patent protection and therefore are much cheaper than patent-protected products). Generic competition is the surest way of keeping down drug costs.
In part because of federal and state requirements, in part to make sure physicians are prescribing medically and economically appropriate drugs, virtually all insurance companies and hospitals have established formularies, lists of drugs that both physicians are permitted to prescribe and insurance companies will reimburse (partly or fully pay for). In more or less restrictive ways, these formularies generally “position” drugs and form the basis for coverage rules: for example, a relatively restrictive formulary may indicate one or two drugs in a category (for example, in multiple sclerosis, Copaxone and a high-dose beta interferon product) as the preferred drugs, which means that the patient will pay the lowest share of the drug cost (co-pay) by buying the preferred drugs. Other competitive drugs will be non-preferred, which means that the patient will pay a higher percentage of the drug's cost. In this way, insurers and hospitals can influence physicians to prescribe preferred drugs—which is how a health plan or hospital can use its leverage to negotiate a lower price from the manufacturer. The fewer drugs a plan allows patients to access, the greater their ability to extract discounts, as the discounts are related to how many patients will use a drug.
Formularies, and their associated coverage rules, also have other ways to encourage the use of preferred drugs: they can, for example, specify that particular drugs can't be prescribed, or won't be reimbursed, unless a preferred drug is prescribed first, a so-called “step edit”. Sometimes, the formulary will require a physician to get permission to prescribe the drug—a “prior authorization”. Even if permission might be granted, the physician often doesn't want to take the time to go through the bureaucratic process prior authorization requires.
While many formularies are quite restrictive when it comes to primary care drugs (drugs for treating broadly prevalent conditions, such as hypertension and high cholesterol), few formularies are restrictive when it comes to specialty drugs. The reason is historical as well as practical: when formulary practice was being established, there were fewer specialty drugs than today, those drugs were not particularly expensive, and they served small populations. There was, in short, little need to manage their use. Moreover, because these diseases can be quite serious, patients and doctors can cause a considerable ruckus, with significant adverse PR consequences, if they feel they are unjustifiably denied the medicines of their choice. In addition, a large number of specialty drugs circumvent the usual prescription drug payment process because they are administered in a physician's office or other health care delivery setting (e.g., infusion center) and are therefore reimbursed outside of the prescription drug claims process.
In part because specialty drugs frequently fall outside of health plan formularies and the prescription drug claims process, their total cost has risen dramatically. Pharmaceutical companies, recognizing their economic potential, have refocused much of their research and development from creating primary care drugs to specialty drugs. The pharmaceutical industry has introduced over 20 new specialty drugs in the past 3 years and their prices have risen enormously. For example, in 2012, twelve new cancer drugs were introduced, each at an annualized price of more than $100,000 and none offering, on average, more than a few extra months of life. The average annual price of a rheumatoid arthritis drug introduced in the last decade is about $60,000; none of these drugs is significantly more effective than the others. The cost of specialty drugs is now roughly 30-35% of the total drug bill in the United States.
A formulary typically is created and modified by a Pharmacy & Therapeutics (P&T) committee, a group of medical and pharmacy staff and consultants appointed or engaged by an insurance company, a health plan, hospital, IDN (integrated delivery network), or ACO (accountable care organization) (we sometimes referred to these organizations and others that have an interest in formularies and the costs of medicines as “stakeholders”). These P&T committees meet regularly—most meet about four times per year—to assess the value of drugs which have newly reached the market following regulatory approval, or how new medical, scientific and economic information affects the value of existing drugs. Based upon these committee meetings the committee determines changes to the formulary. For example, if a new multiple sclerosis (MS) drug has been approved, the P&T committee assesses its value and then decides whether to add it to the formulary, in what position, and with what restrictions. (If it's a specialty drug, as in this MS drug example, the P&T generally adds it to the formulary without significantly distinguishing its position from its competitors.) For example, at Harvard Pilgrim Health Plan, the formulary lists three older drugs—Copaxone, Rebif and Avonex—as simply preferred (Tier 2) but otherwise undistinguished; all newer drugs, those introduced in the last three years (Gilenya, Aubagio and Tecfidera), are simply non-preferred—and likewise undistinguished from each other.
To help the P&T committee make these assessments, the pharmacy departments of insurance companies and hospitals gather assessment data including data from clinical trials, FDA approval documents, and information provided by the manufacturers. Some kinds of assessment data are assembled and sold by data vendors. Most payers and hospitals subscribe, for example, to information services, such as Micromedex and Facts & Comparisons, which consolidate in a single database all the label information from approved drugs and sometimes articles, or electronic links or references to articles, from medical journals with data from clinical trials. The Academy of Managed Care Pharmacy provides an electronic platform through which manufacturers can submit data to P&T committees. But none of these databases synthesizes the information or provides any recommendations on what to do with it. That's the job of the pharmacists working for the payer (these pharmacists usually have many other duties as well) and the members of the P&T committees. Other plans have essentially outsourced much of the heavy-lifting of the assessment process to pharmacy benefit managers (PBMs), companies who make money largely on drug-distribution margins and manufacturer rebates. Plans may not fully trust the drug choices of PBMs whose economics are often tied to the deals they sign with specific manufacturers for preferring their drugs.
Finally, very few of these P&T assessments—at hospitals, plans or PBMs—are particularly systematic—and almost none of them transparent to the hospital, the insurer, the pharmacies, the manufacturers, the physicians, the patients, or any of the other stakeholders. The assessment processes differ from P&T committee to P&T committee, in the information they use and the importance they ascribe to the different assessment characteristics (for example, clinical efficacy on symptoms vs. disease modification vs. side effects vs. drug economics). In general, the process is not documented—so it is difficult for any stakeholder—physicians, for example, or the employer-clients of the insurance companies or PBMs—to analyze, let alone challenge formulary decisions. The less transparency, the less trust in the process. This has practical problems. Physicians are less likely to follow formulary recommendations because they have little faith in their validity. And insurance-company clients, such as employers, have little reason to believe that the formulary choices that plans make necessarily reflect the best interests of the clients' employees.
Some other shortcomings of the existing assessment system are that P&T committees do not assess all drugs because they don't have the time, and several of the most expensive drugs are not managed through the pharmacy claims process, but instead through the medical benefit claims process, which often bypasses the established P&T review and reimbursement process. Most P&T committees make Decisions on 3-4 new drugs each meeting. Since most P&T committees meet quarterly, they make even superficially reasoned decisions on only 12-16 drugs per year. This is inadequate: in 2012, the FDA approved 39 drugs. And there was plenty of new information released about existing drugs which—were a P&T committee to have the time to examine it—could clearly change formulary decisions.
Most P&T committees do not assess drugs which are dispensed to patients by physicians and other medical providers (as opposed to drugs which patients pick up at pharmacies). These provider-dispensed drugs, called medical-benefit drugs, are paid for differently (typically the provider buys the drug, bills the insurance company for the cost of the drug plus a dispensing fee, which is calculated as a percentage of the cost of the drug). In these situations the dispensing provider has an incentive to prescribe medical-benefit drugs, and in particular expensive medical-benefit drugs (the higher the cost of the drug, the higher the dispensing fee). Theoretically, these medical-benefit drugs have their own sets of coverage rules, created by a plan's medical policy team, but in practice such rules are not particularly restrictive, when they exist at all—in part because they are administered by the health plan personnel who are responsible for the medical benefit in its entirety, which includes policies concerning the coverage of claims for medical treatments, surgical procedures, and hospitalizations. Indeed, the medical policy team often is so busy that the rules around medical-benefit drugs are often written for plans and hospitals by specialty distributors who make more money the more the drugs are used—hence they have no incentive to impose restrictive rules.
In short, payers and hospitals spend significant time and effort assessing too few drugs and doing so unsystematically and opaquely. Their current solutions are inadequate.
What we describe here is, among other things and in various implementations, a quantitative, consistent, and transparent system that aids the assessment of drugs, for example the assessment (and updating the assessment) of the value of older drugs, newly approved drugs, and drugs in the various stages of clinical development in the context of all of their competitors. It dramatically speeds up the assessment process, it frees pharmacists to spend time on more complicated tasks; it supports high-quality, clearly justifiable formulary decisions; enables cost-saving formulary choices; improves formulary compliance by providers; and facilitates communication among all stakeholders—physicians, patients, employers, and within the plan, medical policy and pharmacy groups.
In general, in an aspect, data is stored for each of several pharmaceuticals that are associated with a given indication. The data is representative of elements of value of the pharmaceutical including elements within the domains of clinical efficacy, safety and use, and economics. A computer is used to calculate a drug score for each of the pharmaceuticals based on the data that is representative of the elements of value. Through a user interface, the relative scores and the basis on which they were calculated are displayed to enable decisions about the pharmaceuticals, such as the reimbursement of pharmaceuticals.
Implementations may include one or any combination of two or more of the following features. The drug score includes an aggregate of element scores for elements associated with each of the domains. The drug scores are for pharmaceuticals that are associated with a given medical indication. The user interface displays at least one of the data, a summary table, a coverage recommendation, an analysis, an element score associated with one of the domains, and a drug score. The calculating of the score may include multiplying an individual element's score by a weighting factor. A multiplier factor is associated with at least one of the following criteria: (a) a strength of evidence, (b) an extent of post-marketing experience, real world evidence, or both, (c) one or more labeled indications, and (d) non-drug costs. The user includes at least one of a health care provider, a health care payer, and a pharmaceutical company. A user can, through the user interface, specify an arbitrary weighting factor to be applied to any one or more of the element values when the drug score is calculated. The method includes pre-storing prose descriptions of a series of levels of value of at least one of the rating elements and a numerical rating associated with each of the levels, and through the interface, enabling a user to select one of the levels and the numerical rating applied in calculating the drug score, as well as the relative weight of that element within the drug score. Each of the element ratings and the weight of each element as a component of the drug score can be adjusted by the user to reflect his interpretations of the raw information used to arrive at ratings.
The method can include storing and displaying, through the user interface, prose descriptions of states of a medical condition and, for each of the prose descriptions, a prose explanation of an impact of a pharmaceutical on the state of the medical condition. The method can include displaying, through the user interface, a prose explanation of the basis for each of the domains, of the drug score that is calculated, and factors for consideration in placing the pharmaceutical in a formulary. Through the user interface, an explanation of the basis for a rating and adjustment of a rating for a rating element can be displayed, the explanation summarizing scholarly references. A graph of the respective scores of each of two or more pharmaceuticals associated with a medical indication, in each of two or more domains of value, can be displayed. A user can place the pharmaceutical on a formulary, or adjust its position on a formulary, based on the score or purchase a formulary reflective of the drug scores.
In general, in an aspect, a user, through a computer interface, reviews, for each of several pharmaceuticals that are associated with a given indication, data that are representative of elements of value of the pharmaceutical including elements within the domains of clinical efficacy, safety and use, and economics, and a computer calculated drug score for each of the pharmaceuticals. The data is representative of the elements of value. A user can place the pharmaceuticals in positions on a formulary, and create coverage rules, reimbursement rules, or policies for pharmaceuticals based on the formulary.
These and other aspects, features, and implementations, and combinations will become apparent from the following description and claims, and can be expressed as methods, systems, components, software products, means and steps for performing functions, business methods, apparatus, and in other ways.
As shown in
Each drug score 16, 18, is generated by an algorithm 26 running on a computer 29. The algorithm uses information from a variety of databases, including a database of externally available data sources 31, a database of element scoring tables 33, a database of ratings 35, and a database of weightings of elements 37, among others. The results of applying the algorithm can be provided from the computer 29 in the form of printed reports 41 or through online access 43 through the Internet or other communication medium. Those for whom access is authorized may have access to the underlying data 81 used by the algorithm, summary tables 83, e-reports 85, coverage recommendations 87, and analysis 89. The printed reports 41 and the electronic access 43 can include the scores generated by the algorithms for the various drugs associated with a given indication.
In some examples that we describe here, the algorithm evaluates drugs on nineteen clinical efficacy 28, safety and use 30 and economic 32 elements in the three domains that are relevant to payers 50, 51, and providers 52 (and other stakeholders), creating an overall drug score 16 that is the sum of domain scores 27, 29, 31 for the three key domains 28, 30, 32—Efficacy, Safety and Use, and Drug Economics—each of which is itself the sum of specifically scored elements 42, 44, 46 (
A number of these rating elements can be modified by multipliers to present a more meaningful (e.g., more realistic or more useful) element score. For example, a drug's clinical benefit element score 46 reflects its performance in clinical trials. The more effective the drug, the higher the clinical benefit score. The algorithm of the system can incorporate a multiplier that reflects the “strength of evidence” as it relates to clinical data 483. For example, if the trial was structured as a placebo-controlled study, which is a relatively less challenging trial structure, the system can apply a multiplier of 70% (0.7 on a scale of 0.0 to 1.0) to modify (in this case reduce) the clinical benefit element score. If the trial was structured as a head-to-head comparison with standard of care and statistically powered for superiority, which is a very rigorous trial structure, the system can apply a multiplier of 100% to modify the clinical benefit element score. That is, a drug scoring 10 on efficacy and tested against placebo would receive a final efficacy (10)×strength of evidence (70%) element score of 7. A drug scoring 10 on efficacy and tested with a head-to-head trial against standard of care powered for superiority would score a final efficacy (10)×strength of evidence (100%) element score of 10. Other multipliers can be used in the algorithm to reflect factors such as strength of evidence relative to degree of disease modification 488, a non drug price multiplier 103, and other factors.
Referring to
The Drug Economics domain score 31, plus the domain scores 27, 29 of the Safety and Use and Efficacy domains (themselves the sums of their own constituent elements that are multiplied times weightings), equals the total drug score 16, 18 of the drug under assessment. Each of the rating elements (sometimes called REs), and each of the domain scores that make up the total score is assigned based upon a pre-set rating table for each element that is designed based upon the features (rating elements) of the drugs and the medical indication being analyzed 200. Examples of rating tables 200 for two factors (rating elements) are shown in
In some examples, a user (e.g., a plan) can elect to enter an alternate weighting factor 100 (
The system is entirely customizable (
For example, as shown in
In some examples, real world evidence can be integrated into the drug evaluation approach. Users of the system can enter data from their own experiences into the system for drug evaluation. For example, clinical trial data for a particular drug may indicate that the drug is fairly well tolerated, and as a result the drug is assigned a moderate score for severity of side effects. A user has collected real world evidence in treating patients with the same drug and has found that some patients experience severe side effects. The user can change the score assigned for severity of side effects to reflect this experience, or the relative importance of the element as a component of the total score.
The system we describe here creates reports—targeted to different audiences—but all of which demonstrate the rationale for the scores. The table below lists examples of reports and their characteristics:
The table below lists some of the characteristics of existing approaches and corresponding characteristics of the system that we are describing.
Thus, the system we describe here creates formulary recommendations based on the scores generated for drugs using the algorithm, the input data, and the customizations of the users.
As shown in
For example, the system can be implemented in part or completely on a computing device or a mobile device. The computing device can be in any form of digital computers, such as laptops, desktops, workstations, personal digital assistants, servers, blade servers, mainframes, and other appropriate computers. A mobile device could be any form of mobile device, such as personal digital assistants, cellular telephones, smartphones, tablets, and other similar computing devices.
Such a computing device can include a processor, memory, a storage device, a high-speed interface connecting to memory and high-speed expansion ports, and a low speed interface connecting to low speed bus and storage device. Each of the components are interconnected using various busses, and may be mounted on a common motherboard or in other manners as appropriate. The processor can process instructions for execution within the computing device, including instructions stored in the memory or on the storage device to display graphical information for a GUI on an external input/output device, such as display coupled to high speed interface. In some implementations, multiple processors and/or multiple buses may be used, as appropriate, along with multiple memories and types of memory. Also, multiple computing devices may be connected, with each device providing portions of the necessary operations (e.g., as a server bank, a group of blade servers, or a multi-processor system).
The computing device may be implemented in a number of different forms such as a standard server, or multiple times in a group of such servers. It may also be implemented as part of a rack server system. In addition, it may be implemented in a personal computer such as a laptop computer. Alternatively, components from the computing device may be combined with other components in a mobile device.
A mobile device may communicate wirelessly under various modes or protocols, such as GSM voice calls, SMS, EMS, or MMS messaging, CDMA, TDMA, PDC, WCDMA, CDMA2000, or GPRS, among others. Short-range communication may occur, such as using a Bluetooth, WiFi, or other such transceiver (not shown).
The computers and mobile devices can run computer programs (also known as programs, software, software applications or code) that include machine instructions for a programmable processor, and can be implemented in a high-level procedural and/or object-oriented programming language, and/or in assembly/machine language.
To provide for interaction with a user, the systems and techniques described here can be implemented on a computer having a display device (e.g., a CRT (cathode ray tube) or LCD (liquid crystal display) monitor) for displaying information to the user and a keyboard and a pointing device (e.g., a mouse or a trackball) by which the user can provide input to the computer. Other kinds of devices can be used to provide for interaction with a user as well. For example, feedback provided to the user can be any form of sensory feedback (e.g., visual feedback, auditory feedback, or tactile feedback). Input from the user can be received in any form, including acoustic, speech, or tactile input.
The systems and techniques described here can be implemented in a computing system that includes a back end component (e.g., as a data server), or that includes a middleware component (e.g., an application server), or that includes a front end component (e.g., a client computer having a graphical user interface or a Web browser through which a user can interact with an implementation of the systems and techniques described here), or any combination of such back end, middleware, or front end components. The components of the system can be interconnected by any form or medium of digital data communication (e.g., a communication network). Examples of communication networks include a local area network (“LAN”), a wide area network (“WAN”), and the Internet.
The computing system can include clients and servers. A client and server are generally remote from each other and typically interact through a communication network. The relationship of client and server arises by virtue of computer programs running on the respective computers and having a client-server relationship to each other.
Other implementations are also within the scope of the following claims.