Representatives Probe CMS for Further Detail on New CAR-T Therapy Payment Agreement
After CMS and Novartis devised an outcomes-based payment approach for the new chimeric antigen receptor (CAR)-T treatment tisagenlecleucel (Kymriah), a group of representatives are requesting more information on the specifics of the agreement.
After CMS and Novartis devised an outcomes-based payment approach for the new chimeric antigen receptor (CAR)-T treatment tisagenlecleucel (Kymriah), a group of representatives are requesting more information on the specifics of the agreement.
“As members strongly concerned with both rising prescription drug prices and the need to protect taxpayer access to therapies developed with public funding, we are watching closely the discussion around pricing for this treatment,”
Novartis had first trumpeted the “groundbreaking collaboration” with CMS in
The representatives acknowledged that Kymriah, the first CAR-T therapy approved in the United States, “is a promising treatment that may benefit cancer patients,” but noted that it will only be effective if patients in need are able to afford it, considering the estimated $475,000 price tag. They also cited concerns about the $200 million in taxpayer funding used to finance the therapy’s development.
The letter included 14 questions for Verma on how CMS developed the outcomes-based payment equation for Kymriah. It asked for an explanation of payment mechanisms, details on data collection, and estimates on the number of patients who would be eligible, as well as how exactly a successful response would be defined. There were also questions about whether any of the CMS political appointees who had developed the agreement had ever worked for Novartis or elsewhere in the pharmaceutical industry.
“We look forward to the opportunity to learn more about how CMS established this outcomes-based payment agreement and how it will be enacted,” the letter concluded. “We look forward to your reply and your continued engagement as the conversation around outcomes-based pricing moves forward.”
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“Improving payment arrangements is a critical step towards fulfilling President Trump’s promise to lower the cost of drugs,” Verma said in the statement.
Two of the representatives who signed the letter, Peter Welch, D-Vermont, and Elijah Cummings, D-Maryland,
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