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Payer and Developer perspectives on alternative payment models
Renita Moradian1, Tsega Meshesha1, Mark Trusheim1
1New Drug Development Paradigms (NEWDIGS) Initiative, Center for Biomedical System Design, Tufts Medical Center Institute for Clinical Research and Health Policy Studies, Boston, MA, USA.
Objective:
To understand the use of alternative payment models to address the reimbursement challenges of cell and gene therapies (CGT) in the U.S.A..
Methods:
A literature search focused on CGT reimbursement in the U.S. market was conducted to identify information gaps and inform survey development. U.S. developers (n = 100) and payers (n = 195) were invited to complete an online survey between June and August 2022.
Results:
The overall response rate was 16%; payer respondents represented 98 plans covering 338 million lives. Most developers (81%) and payers (84%) had implemented or were planning to implement at least one alternative payment model. Payers pursued these models to 'reduce product performance uncertainties' (81%), 'align therapy costs with benefits' (58%), and 'manage actuarial uncertainty' (54%). Developers aimed to 'streamline patient access' (92%) and 'mitigate budget impact' (77%). Common perceived barriers included increased administrative burden (developers 79% and payers 67%), defining performance measures (developers 71%, payers 83%) and addressing patient mobility (developers 71% and payers 63%). Both parties expressed a willingness to use real-world evidence for contract adjudication.
Conclusion:
Although limited by the number of participants, this survey indicates early discussions coupled with understanding motivations are essential for developing contracts that appeal to both parties and ensure patient access.
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