Getting animated about GCEA
By RApport and No Patient Left Behind
No Patient Left Behind (NPLB) is a non-profit organization fighting to eliminate out-of-pocket costs for patients, extend insurance to everyone in America, and ensure that all drugs go generic without undue delay.
December 8, 2022
Traditional cost-effectiveness analyses done by organizations like ICER and NICE overlook much of the value of new drugs, including factors with crucial societal impact like genericization, risk reduction, and community spillover. Peer-reviewed research has made this clear again and again, but these organizations continue to insist on using outdated formulas to determine the value of drugs. With the passage of the IRA and imminent drug pricing “negotiations” (read: price controls), it’s more important than ever to get the math that values our medicines right.
RA Capital has developed a variety of short, free, self-guided online learning modules called RA University. Our goal is to share practical and theoretical concepts fundamental to the biotech industry that aren't being presented anywhere else.
Today NPLB released a new video to help set the record straight. The animation illustrates the importance of updating our calculations using what we call generalized cost-effectiveness analysis (GCEA). Doing so will allow us to understand how much new drugs are really worth to society and demonstrate the consequences of insurance companies’ failure to calculate the benefits and value of certain drugs, resulting in higher out-of-pocket costs for patients.
“NPLB’s animation illustrates the importance of recognizing the societal benefits of innovative medicines, as well as the failure of insurance companies and global HTA entities to appropriately calculate and recognize their value,” said NPLB Executive Director Peter Rubin. “Insurance companies and economists that rely on limited and outdated ‘cost-effectiveness analysis’ math are harming patients by not taking into account the true value of medicines and their critical role in building a healthy, productive society.”
No Patient Left Behind is working to make medicines affordable and accessible for everyone in America by ensuring insurance companies and health economists recognize the real value of drugs for patients and society.
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