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The Sinking SCHIP

  • 01.14.2009
Adding 30 billion or so to expand SCHIP is a done deal.  Now the question is whether there will be any accountability to the families who enroll in the program.

I am not even talking about health outcomes.  I am talking about the care actually being there.

As Woody Allen once said: "80 percent of success is showing up."  So therefore:

How long will families have to wait to see a doctor for both a sick or well check up?

How long will they have to wait to get referred to a specialist or receive authorization for a procedure or medicine?

Studies show that over time increases in SCHIP enrollment have done nothing to reduce the use of emergency rooms as a routine source of care.  Has anyone ever care to ask or find out why?  We know that "high ED use in some communities also likely reflects generic preferences for EDs as a source of care for nonurgent problems..." but shouldn't SCHIP be organized in ways to reward less expensive but equally effective sources of care?   For further details. see here.

This is not a matter of public vs. private as much it is as trying to make sure the health coverage some how translates into better health.   Without a sustained effort the promotes competition based on price, quality and convenience, SCHIP will degenerate into Medicaid for the middle class.  

According to a story in today’s USA Today:  Genetic testing boosts efficacy in cancer care,

 Tailoring cancer therapies to fit a person's genetic makeup could spare thousands of patients from harmful side effects and save millions of dollars a year, a study shows … Although the newest cancer drugs offer a number of improvements over older therapies, they often cost thousands of dollars more a month …Treating a colorectal cancer patient with a drug called Erbitux, for example, costs more than $61,000 for a typical treatment with 24 doses, according to a study presented Tuesday at the American Society of Clinical Oncology meeting in San Francisco … Even patients with good insurance could pay thousands of dollars out-of-pocket for Erbitux or a similar drug, Vectibix …Over the past year or so, several studies have shown neither Erbitux or Vectibix works in patients with a certain genetic mutation, which occurs in 36% to 46% of tumors, says Veena Shankaran, a fellow at the Veterans Administration Center for the Management of Complex Chronic Care in Chicago, whose study focused on Erbitux … Giving Erbitux only to patients without the mutations would save the country up to $604 million a year, Shankaran says …Skipping Erbitux also would spare patients from its side effects, including a severe, acne-like rash, she says …Testing tumor tissue for the mutations "saves tons of money, and makes medical care better at the same time," says Leonard Saltz, a colorectal cancer specialist at New York's Memorial Sloan-Kettering Cancer Center … But no matter how many patients are treated, Shankaran says, the $452 cost of genetic testing will always be a bargain compared with wasting tens of thousands of dollars giving drugs to people who have no chance of being helped …That would allow patients to get the best medications right away, instead of wasting time and money on drugs that won't work, Shankaran says.

Amen.

Personalized medicine is not about denying care. It’s about providing “the four rights” (the right medicine in the right dose to the right patient at the right time). Personalized medicine can (indeed must!) be both cost-effective and patient-centric. 

Yet, on the reimbursement front, many payers aren’t ready to accept the up front expense – even though the longer-term savings can be substantial. For more on this issue see "Diagnostical Materialism.” 

Diagnostics reimbursement should be based on value rather than activity

On the regulatory front greater clarity and predictability are required.  At present, FDA guidance on diagnostic approvals are vague.  To reinforce the agency’s commitment to personalized medicine, the FDA should embrace ever-greater clarity and commitment to diagnostic tool review.  This should be a top priority of the agency’s Critical Path program.

The Critical Path Institute (created in 2005 by the
University of Arizona and the U.S. Food and Drug Administration to standardize an approach to validating medical products) is working on a solution, a “GoodHousekeeping Seal of Approval” for diagnostics. C-PATH plans to launch its United States Diagnostic Standards in the coming months.

According to a recent article in the Journal of Life Sciences,

“The United States Diagnostic Standards will offer a voluntary certification for laboratory and pathology diagnostics, much like the Underwriters Laboratories certification for many tools and equipment. Companies already submit their tests to data test sites for evaluation prior to FDA submission, says Jeffrey Cossman, chief scientific officer of C-Path. This would take the place of a data test site.”

This speaks directly to the contentious issue of partnership between the FDA, industry and academia.  No one entity can do it alone.  This is a core philosophy that will, no doubt be vigorously debated in Congress – and by the next FDA commissioner. We need a stated policy of pragmatic partnerships.

Nobody said it going to be easy.

Relative to FDA oversight of clinical trial investigator conflict of interest, the New York Time opines: 

"The inspector general of the Department of Health and Human Services reviewed all 118 applications for marketing drugs and medical devices that were approved by the F.D.A. in fiscal year 2007. It found appalling failures to collect information and act on it ...The inspector general made several suggestions, including stressing that the due diligence exemption should be used rarely. The agency accepted most, but it strongly opposed a recommendation that it require companies to submit financial conflict information before a clinical trial is started, not after it is completed. The F.D.A. complained that that would increase its workload for no clear gain, especially since many drugs or devices that enter clinical trials never reach the market ... Such bureaucratic excuses seem lame. Surely it would be better for the F.D.A. to eliminate potential conflicts before they can bias a trial than try to mitigate them after the results are in."

Absolutely.  Transparency.  Transparency.  Transparency.  The agency's lack of funding (and ensuing lack of manpower to accomplish the task in a thorough and timely manner) must be remedied.  Editorializing about the problem is important -- doing so about the solution, even more so.  Want the problem fixed?  Show me the money! Otherwise it's just rhetoric.

The Times continues:

"The agency’s lax performance underscores the need for Congress to pass legislation requiring all drug and device makers to report their financial arrangements with doctors in a public databank. That would make it harder for clinical investigators or sponsoring companies to hide potential conflicts, including those that might bias clinical trials for the F.D.A."

Not so fast.  Beyond the obvious fact that such a database would help nobody other than trial lawyers, a more dire unintended consequence would be the unfair stigmatization of doctors and scientists who participate in clinical trials sponsored by pharmaceutical companies. Fearful of jeopardizing their reputations, this could motivate many to leave clinical trial research altogether -- making trials more difficult tand more expensive to field in the first place.  And this outcome is most definitely not in the best interests of the public health.

Let's do the right thing -- but not get carried away.

The full Times editorial can be found
here.

Enraging the enemies of medical progress everywhere, the FDA finished up a decade long progress of issuing regulations about how companies can provide information about the off-label use of medical products.   Of course the media, including those who do puff pieces on Sid Wolfe, will portray off-label use as inherently dangerous. But to the extent that most off-label uses wind up become standard therapy and to the extent that off-label applications are used a benchmarks in the evaluation of drug safety and efficacy of new drugs in advisory committees,  often by the same critics of off-label use to block new drugs, how dangerous is off-label use?  And at a time when such use can be monitored, compared and evaluated at a patient level and is often essential because of genetic variation, I want to see who will propose making off-label use illegal. Maybe a study that looks at the number of lives saved and improved through off-label use is in order. 
No real surprise that Frank Torti was named Acting FDA Commissioner.  After all, as the Principal Deputy to the Commish, it makes both logical and bureaucratic sense.  Facts and precedent notwithstanding, the usual suspects are trying very hard to make the case that this is a deliberate slight to Janet Woodcock. Balderdash.

What the Torti appointment does demonstrate (IMHO) is a vote of confidence on the part of the incoming administration in the agency's career staff -- and a polite "mind your business" to certain members of Congress.  After all, it was only last month that Representative Bart Stupak wrote to President-elect Obama recommending, " ... not to appoint any current senior FDA employee as Commissioner or Interim Commissioner of the FDA."

Thanks Bart.  But no thanks.

Thomas Sowell, intellectual giant and senior fellow at the Hoover Institution, recently wrote a glowing review of Sally C. Pipes’ new book "The Top Ten Myths of American Health Care."

Sowell offers this profound insight about the state of the current healthcare discussion in the country:

It is one of the painful signs of our times that millions of people are so easily swayed by rhetoric that they show virtually no interest at all in finding out the hard facts. Any number of other countries already have government-controlled medical professions. Yet few Americans show any interest in what actually happens to medical care in those countries.

Instead, we are being lured into a one-way process-- much like entering a Venus fly trap-- by the oldest of all confidence rackets, the promise of something for nothing.

Sowell continues:

The lure of something for nothing may be seductive when you are in good health. But it can become a bitter irony when you are waiting for months for surgery to relieve your pain or when your life hangs in the balance while some bureaucrat decides whether you can get the best medication or something older and cheaper.


A bitter irony indeed. Remember those words: The promise of something for nothing. These words define the 'universal healthcare' movement.

The lofty promises from "Universal Healthcare" advocates undoubtedly have great appeal to many Americans. That is why in the coming months it is vital that those of us who value a patient-centered, free-market healthcare system step up efforts to effectively counter the false promises being peddled by advocates of government-run healthcare.

Sally Pipes’ The Top Ten Myths of American Health Care is a good start.


Economist Robert Samuelson has a superb piece in Newsweek dispelling some of the common myths perpetuated by single-payer health-care supporters.
 
Here are a few particularly noteworthy excerpts.
 
On administrative overhead:
 
One is that our mixed private-public insurance system drives up costs through high administrative overhead. Claim forms create a paperwork morass; marketing expenses add to the burden. True, overhead costs in the United States are more than double the level in other countries. But the effect is modest, because all administrative costs account for a mere 7 percent of total health costs. Even halving administrative costs would offset only about six months of the annual growth in health spending of 6 to 7 percent.
 
On the supposed superiority of Universal health care systems:
 
What really drives health spending, the study finds, is that Americans receive more costly medical services than other peoples do, and pay more for them. On a population-adjusted basis, the number of CT scans in 2005 was 72 percent higher in the United States than in Germany; U.S. reimbursement rates were four times higher. Knee replacements were 90 percent more frequent than in the average wealthy country and are growing rapidly. In 2005, there were 750,000 knee and hip replacements, up 70 percent in five years, reports the journal Health Affairs.
 
On American values and free-market healthcare:
 
We have a health-care system that reflects our national values. It's highly individualistic, entrepreneurial and suspicious of centralized supervision. Despite gripes about limits imposed by private insurers and Medicare, there are few effective controls on doctors' and patients' choices. That's what most Americans want. Patients understandably desire the most advanced surgeries, diagnostic tests and drugs. Doctors want the freedom to prescribe and recommend.
 
To read the article in its entirety, click here.

The FDA has finalized guidelines that govern off-label information sharing.

The FDA document states that doctors should be made aware of experimental uses for drugs and devices -- even if regulators have not approved them.

"The public health may be advanced by healthcare professionals' receipt of medical journal articles ... on unapproved new uses," the agency states. Such uses may even "constitute a medically recognized standard of care," according to the agency.

Knowledge is power.  And information saves lives.

Bravo!

National healthcare spending hit a record high of $2.2 trillion in 2007, according to a report just released by the government. The total accounts for over 16 percent of the nation's GDP, and averages out to a $7,421 bill for each one of us.

These numbers are staggering. President-elect Barack Obama and his Secretary of Health and Human Services nominee, Tom Daschle, need to take immediate steps to make sure the money we spend delivers the healthcare we need.

Unfortunately, many of the incoming administration's reform proposals, although well-intentioned, boil down to a single, destructive policy: Price controls.

Perhaps the most damaging healthcare reform we are likely to see in the coming years is Secretary Daschle's plan for a Federal Health Board. Based loosely on Great Britain's National Institute for Health and Clinical Excellence (NICE), this new body would evaluate the effectiveness of different medical treatments with the aim of removing waste from the healthcare system.

Daschle has said that the agency will "reduce or deny payment for new drugs and procedures that aren't as effective as current ones." In the past, however, agencies like NICE have unfairly denied treatment to patients by applying a broad definition of "effective."

Have a look at this new op-ed from the pages of the Washington Examiner … and think hard about what we really want American healthcare to look like.

R&D and T

  • 01.12.2009

CMPI

Center for Medicine in the Public Interest is a nonprofit, non-partisan organization promoting innovative solutions that advance medical progress, reduce health disparities, extend life and make health care more affordable, preventive and patient-centered. CMPI also provides the public, policymakers and the media a reliable source of independent scientific analysis on issues ranging from personalized medicine, food and drug safety, health care reform and comparative effectiveness.

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