Cost-effectiveness evidence on approved cancer drugs in Ireland: the limits of data availability and implications for public accountability

Suaad Almajed, Nora Alotaibi, Sana Zulfiqar, Zahraa Dhuhaibawi, Niall O’Rourke, Richard Gaule, Caoimhe Byrne, Aaron M. Barry, Dylan Keeley and James F. O’Mahony ()
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Suaad Almajed: School of Medicine Trinity College
Nora Alotaibi: School of Medicine Trinity College
Sana Zulfiqar: School of Medicine Trinity College
Zahraa Dhuhaibawi: School of Medicine Trinity College
Niall O’Rourke: School of Medicine Trinity College
Richard Gaule: School of Medicine Trinity College
Caoimhe Byrne: School of Medicine Trinity College
Aaron M. Barry: School of Medicine Trinity College
Dylan Keeley: School of Medicine Trinity College
James F. O’Mahony: School of Medicine Trinity College

The European Journal of Health Economics, 2022, vol. 23, issue 3, No 4, 375-431

Abstract: Abstract Background We surveyed evidence published by Ireland’s National Centre for Pharmacoeconomics (NCPE) on the cost-effectiveness of cancer drugs approved for funding within the Irish public healthcare system. The purpose is threefold: to assess the completeness and clarity of publicly available cost-effectiveness data of such therapies; to provide summary estimates of that data; to consider the implications of constraints on data availability for accountability regarding healthcare resource allocation. Methods The National Cancer Control Programme lists 91 drug-indication pairs approved between June 2012 and July 2020. Records were retrieved from the NCPE website for each drug-indication pair, including, where available, health technology assessment (HTA) summary reports. We assessed what cost-effectiveness data regarding approved interventions is available, aggregated it and considered the consequences of reporting constraints. Results Among the 91 drug-indication pairs 61 were reimbursed following full HTA, 22 after a rapid review process and 8 have no corresponding NCPE record. Of the 61 where an HTA report was available, 41 presented costs and quality-adjusted life-year (QALY) estimates of the interventions compared. Cost estimates and corresponding incremental cost-effectiveness ratios (ICERs) are based on prices on application for reimbursement. Reimbursed prices are not published. Aggregating over the drug-indication pairs for which data is available, we find a mean incremental health gain of 0.85 QALY and an aggregate ICER of €100,295/QALY, which exceeds Ireland’s cost-effectiveness threshold of €45,000/QALY. Conclusion Reimbursement applications by pharmaceutical manufacturers for cancer drugs typically exceed Ireland’s cost-effectiveness threshold, often by a considerable margin. On aggregate, the additional total net cost of new drugs relative to current treatments needs to be more than halved for the prices sought on application to be justified for reimbursement. Commercial confidentiality regarding prices and cost-effectiveness upon reimbursement compromises accountability regarding the fair and efficient allocation of scarce healthcare resources.

Keywords: Cost-effectiveness; Policy oversight; Resource allocation; Transparency (search for similar items in EconPapers)
JEL-codes: I18 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10198-021-01365-2

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