Targeted erlotinib for first-line treatment of advanced non-small cell lung cancer: a budget impact analysis

Preeti S Bajaj1, David L Veenstra, Hans-Peter Goertz

  • 1University of Washington, Pharmaceutical Outcomes Research and Policy Program, Department of Pharmacy , Seattle, WA 98195 , USA.

Abstract

Insights

Providing first-line erlotinib for EGFR-mutated non-small cell lung cancer (NSCLC) shows a minimal budget impact for health plans. This targeted therapy increases costs slightly, mainly due to drug expenses, but offers significant patient benefits.

Area of Science:

  • Pharmacoeconomics
  • Oncology
  • Health Services Research

Background:

  • Advanced non-small cell lung cancer (NSCLC) patients with specific EGFR mutations benefit from first-line erlotinib over chemotherapy.
  • The economic implications of covering EGFR testing and erlotinib for this patient group require evaluation within managed care settings.

Purpose of the Study:

  • To estimate the budget impact of providing first-line EGFR testing and erlotinib coverage in a hypothetical 500,000-member managed care plan.
  • To compare the costs of targeted therapy (EGFR testing + erlotinib) versus standard chemotherapy for EGFR-mutated NSCLC.

Main Methods:

  • A budget impact model was developed from a US health plan perspective.
  • Patient population estimated using SEER incidence data; clinical data from randomized controlled trials.
  • Included costs: erlotinib drug, administration, and adverse events; sensitivity analyses performed.

Main Results:

  • Estimated 91 advanced NSCLC patients annually in a 500,000-member plan, with 11 being EGFR-positive.
  • Overall health plan expenditures increased by an estimated $0.013 per member per month (PMPM).
  • Increased costs are primarily from erlotinib drug expenses due to longer progression-free survival; EGFR testing costs were minor.

Conclusions:

  • First-line targeted erlotinib therapy for NSCLC is associated with a small budget impact for US health plans.
  • Budget impact may vary based on plan specifics, inclusion of second-line/maintenance therapies, or quality-of-life considerations.