The High Cost of Cancer Care

by GoozNews ~ 06 Feb 2009 12:15pm

The Kaiser Family Foundation released a disturbing yet ultimately unenlightening study on how cancer care costs are undermining family finances. Many employer-sponsored insurance plans have caps that don't cover today's extraordinarily high costs for cancer care; a quarter of cancer patients use up all or most of their savings; cancer survivors who chance jobs or lose coverage are routinely turned down by insurers when they go into the individual market; and state high risk pools, designed to cover such people, offer skimpy coverage or are not available in most states.

"The problem," according to John Seffrin, chief executive officer of the American Cancer Society, "is underinsurance. The lack of access to quality and affordable health care has become a major cancer killer. Two million cancer survivors are foregoing care today because of underinsurance," he said.

Yes, we know all that. But even if the entire population was well insured, the nation would still have to deal with the extraordinarily high and rapidly escalating cost of cancer care. Alas, despite extensive news media coverage over the past year about rising cancer care costs -- largely due to the rapid increase in the price of new cancer drugs -- the study and the Kaiser forum where it was released was largely silent on the cost issue.

Why didn't they invite Peter Bach of Sloan Kettering Cancer Center in New York? Just last week in the New England Journal of Medicine, he pointed out that "with each advance in treatment, the magnitude of the increase in cost of treatment exceeded the magnitude of improvement in efficacy, thus making each treatment advance less cost-effective than the one that preceded it."

The only commentator at the forum to address the cost issue, even if only tangentially, was John Rowe, a former insurance industry executive now at the Columbia University School of Public Health. Treating cancer patients who are in the third and fourth stages of the disease -- which defines the more than half million people who die from cancer every year -- is subject to huge variability, he said. That is especially true now that Medicare covers most experimental regimens after expanding the number of compendia that can be used to justify reimbursement for oncologists who use those experimental regimens.

Kaiser, like most health-oriented foundations in the policy arena, focuses virtually all of its attention on insurance coverage issues. As a result, those concerned about costs get short shrift in the policy debates in the nation's capital. A quick suggestion: Kaiser should begin funding researchers, policy analysts and advocates who focus on cost and how we can get greater value out of the trillions we spend on care. And when they hold forums on insurance issues, they should include them on the panels.

Comments

The cancer industry derives most of its profits from chemotherapy. Both the drug companies and the treatment providers profit from the chemotherapy drugs and the medications used to combat the side effects. The obscene profits made off chemotherapy override any incentive to find a cure or better treatments.

Doctors administer chemotherapy in their offices, buy the drugs at a lower cost than what insurance companies and public health care programs pay and pocket the difference. This system provides an incentive to overuse chemotherapy and the most expensive medications.

Thanks for highlighting the "curious" omission of the topic of cost of care & esp. price of cancer drugs in ACS-KFF discussion. Based on my now 10+ years of observing the field of cancer care up close and personally, as well as through advocacy work, it's no surprise that costs weren't on the agenda. In the US ( and increasingly worldwide) the vast majority of not just oncology medical societies, but also cancer organizations and patient groups receive financial support from the biopharma companies. The ACS is a well-known case in point,as a recipient of major funding from industry.

Courting of patient groups, and also creating them, is part of a deliberate pharma strategy to seek loyal customers and fend off complaints on pricing. It's the old don't-bite-the-hand-that-feeds-you phenomenon. Marketing of cancer drugs through every form of media is also big business.

In the cancer world it is quite rare to ever hear patients or groups demand that something be done about the price of drugs, as a way to promote access. Instead, the discussion ends up just being a lament about skyrocketing costs, not an analysis of why drugs are unaffordable and what can be done about it.

The present scenario is of course unsustainable. The fairly-new and convoluted patient assistance programs and co-pay assistance programs for cancer and other costly drugs -- which are no solution but now necessary for many in the struggle for survival-- can't keep up with the demand.

It's high time to wake up and smell the coffee.