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New Anticancer Drugs Associated With Large Increases In Costs And Life Expectancy

David H Howard1, Michael E Chernew2, Tamer Abdelgawad3

  • 1David H. Howard (david.howard@emory.edu) is an associate professor in the Department of Health Policy and Management at Emory University, in Atlanta, Georgia.

Health Affairs (Project Hope)
|September 9, 2016
PubMed

Insights

New cancer drugs significantly increase medical costs but also extend life expectancy for patients with metastatic cancers. This study evaluated the cost-effectiveness of these advanced treatments.

Area of Science:

  • Health Economics
  • Oncology
  • Pharmacoeconomics

Background:

  • Anticancer drug spending has surged in the last 20 years.
  • High costs necessitate evaluating the value of novel cancer therapies.

Purpose of the Study:

  • To assess the value of new cancer treatments in routine practice.
  • To analyze cost and life expectancy changes associated with novel anticancer drugs.

Main Methods:

  • Utilized the Surveillance, Epidemiology, and End Results (SEER)-Medicare database.
  • Examined patient data for metastatic breast, lung, kidney cancer, and chronic myeloid leukemia.
  • Compared outcomes between 1996-2000 and 2007-11 periods.

Main Results:

  • Significant increases in medical costs were observed alongside substantial gains in life expectancy.
  • Breast cancer patients receiving physician-administered drugs experienced a $72,000 cost increase and a 13-month life expectancy gain.
  • Patients not receiving new drugs showed smaller changes in costs and life expectancy.

Conclusions:

  • New anticancer drugs represent a significant investment but offer tangible improvements in patient longevity.
  • The value proposition of novel cancer therapies warrants continued investigation in real-world settings.
Keywords:
Health SpendingMedical technologyMedicine/Clinical IssuesPharmaceuticals

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