Biologic drugs help treat devastating illnesses such as inflammatory bowel disease (IBD). However, it’s important to understand the return on investment for these medications goes beyond the cost of the products.
Canadians suffer the highest prevalence of IBD in the world, and the burden of illness for IBD—which includes both Crohn’s disease and ulcerative colitis—is tremendous. In direct costs, it amounts to $1.2 billion annually, with an additional $1.6 billion a year in indirect costs.
“Before the era of biologics, there were a lot of unmet treatment needs,” says University of Calgary Inflammatory Bowel Disease Clinic director and professor of medicine Dr. Remo Panaccione, an international expert in IBD. “The impact of biologic therapy has been revolutionary. We are now able to treat not just the symptoms, but also the disease. Because of that, we’re able to get patients off steroids and reduce long-term complications, hospitalizations and surgeries. [These therapies] are effective [and] safe and have been linked to improvements in workplace productivity and absenteeism, and [to] decreases in disability claims.”
The challenge, however, is the cost. Biologic therapies can cost upwards of $20,000 per patient per year. And the cost savings from subsequent entry biologics (SEBs) are not expected to be as significant as those for generics, because these products are difficult to replicate exactly and SEBs are not currently considered interchangeable with the innovator products. Ultimately, there is a need to generate further evidence around SEBs.
The costs of biologics can be a challenge for plan sponsors, but investments in employee health such as these have returns that go beyond drug effectiveness. When combined with patient assistance programs, for example, biologic medications have been shown to improve long-term disability rates. Manufacturer-sponsored patient assistance programs also offer other services to help patients manage their conditions, at no additional cost to plan sponsors.
“If left untreated or if improperly treated, IBD can lead to other medical problems,” Panaccione notes. “IBD is one of the leading causes of disability in patients under 40. Even though it’s a disease of young people, we see an increase in disability over time if you don’t control the disease.”
And there is a positive psychosocial element to effective treatment. “In an era where cost containment measures are becoming more common and high-cost medications, such as biologics, are low-hanging fruit, it’s important for plan sponsors to remember the value such products provide employees,” Panaccione says.
“Look at the return on investment not just in terms of the effectiveness of the drug, but also [in] the additional services provided by the manufacturers and the associated improvements in absenteeism, productivity and disability. Essentially, the return on investment goes beyond just the value of the drug.”
All the articles from the event can be found in our special section: 2015 Calgary Benefits Summit Coverage.
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