This is from the CSL Behring Advocacy Newsletter:
Health Care Reform - Will Plasma and Recombinant Therapies be Protected?
CSL Behring Public Affairs
CSL Behring is committed to educating decision-makers and impacting public policies that affect patient access to care. The company has an active public affairs group in the United States including Dennis Jackman, Sr. Vice President for Public Affairs; Patrick Collins, Director, Public Affairs; Kim Isenberg, Manager State Government Affairs and Ryan Faden, Manager State Government Affairs. All four have extensive public policy backgrounds and work closely with affected stakeholders and political thought leaders to affect change. Please contact them with any comments you may have regarding public policy issues.
As part of his platform in running for the presidency, Barack Obama pledged to reform the health care system in the United States. Now that he is in office, President Obama is strongly advocating for such reform as his highest domestic priority. With a supportive Democratic Congress, the chances for reform are very possible.
What does health care reform mean in terms of accessing life-saving plasma and recombinant therapies? Moreover, how will such reform impact the patient populations who rely on these therapies?
Several issues currently being debated as part of health care reform are of specific interest to the plasma and recombinant user communities. They include the following:
Increasing the Medicaid Drug Rebate
All manufacturers of drugs and biologics, including those who produce plasma and recombinant therapies, pay a rebate to the federal government in order to have state Medicaid programs cover their therapies. This rebate is currently 15.1% of the Average Manufacturers Price for the individual therapy. The President proposed increasing this percentage to 22.1% to raise revenue in large part to extend health care coverage to the uninsured. Such a proposal will not only raise the rebate to be paid in order to have Medicaid cover such therapies, but it will also increase the discount institutions within the 340B Public Health Service (PHS) pricing program acquire therapies. These entities, including a majority of hemophilia treatment centers, purchase product at the PHS mandated discount rate – which is identical to the Medicaid rebate.
This proposal would raise revenue but there are some unintended consequences that could ensue. They include a potential negative impact on research and development into new product formulations and rare disease therapies. This is due to the onerous financial burden that might be placed on manufacturers of new therapies for small patient populations of which a high percentage are enrolled in Medicaid or obtain their therapy from PHS programs.

President Obama signing
legislation into law
CSL Behring is participating in a collaborative effort with patient advocacy organizations and industry to ensure that consideration for a rebate increase for orphan populations – populations with fewer than 200,000 people with the disease — takes into account the impact of small patient populations that rely on plasma and recombinant therapies.
Comparative Effectiveness Research
As part of the stimulus package approved by the Congress, the Comparative Effectiveness Research Institute was created. President Obama and the Democrats in Congress are pushing comparative effectiveness as a way to save money for larger health care reform efforts while obtaining clinical data on how different treatments work for the individual.
Comparative effectiveness research would analyze different brands of therapy within a class of therapies to determine which brands work best. This may seem ideal for large chemical compound drugs, but for biologics such as plasma and recombinant therapies, we have seen that a “one size fits all” approach does not work. The concern with comparative effectiveness is that such clinical findings will be used to create restrictive formularies and preferred drug lists, as has occurred in the United Kingdom and France. This could prove devastating to patients in the United States if implemented for biologics such as plasma and recombinant therapies, since the possibility exists that decision making would be taken out of the hands of physicians. This is very dangerous for rare diseases where biologic therapies do not work identically for everyone and where physician/patient access to the most appropriate therapies is needed.
Accelerating Access to Generic Biologics
President Obama and the Congress also propose the creation of an accelerated pathway to generic biologics (also called follow-on biologics) as a way to save on health care costs. At present, there is no approval process for generic biologics. A pathway for generic biologics will need to ensure protections for patent rights of branded therapies for a reasonable period of time, in order to ensure an adequate return on the investments by creating innovative therapies, while also adhering to clinical trial requirements to ensure product safety.
There are two proposals currently active within Congress. One version of the legislation would create a viable generic biologics pathway similar to that for drugs, with a data exclusivity period of 12 years. All safety measures associated with the clinical trial process would remain in place. This provision would protect patients through appropriate safety measures and innovation by allowing manufacturers the opportunity to recoup their investment after years of developing a therapy for a small patient population. Without such protections, there is a real risk that biologics companies will no longer innovate and pursue new therapies.
The other proposal, which would allow only five years of exclusivity and is similar to the Obama Administration proposal, calls for seven years exclusivity. This proposal does not require as many safety protections for generics as what currently exist within a branded therapy clinical trial process. As a result, this proposal would make it far easier to create generic biologics for sale in the United States — albeit with reduced safety assurance.
Removal of Lifetime Caps on Private Health Plans
Many private insurance plans have in place a lifetime ceiling on costs for the individual, with some caps as low as $1 million or less. For those with a rare disease, such as those reliant on plasma and recombinant therapies, an individual can reach their cap quickly. This could result in a person having their therapy rejected by their existing health plan.
Both the Obama Administration and the Democrats in Congress have proposed completely removing lifetime insurance caps on private health insurance plans. This is a very positive step toward improving coverage for those with rare conditions reliant on plasma and recombinant therapies.
Patient organizations reliant on plasma and recombinant therapies have re-enlisted the Plasma User Coalition to ensure that access to therapy is not adversely impacted. The removal of such caps addresses one of the Coalition’s general principles.
Plasma User Coalition General Principles
1. Recognition that one size does not fit all in terms of treatment
2. Individuals with rare diseases must have access to: appropriate specialized treatment, centers of excellence; full range of treatments determined by the physician; timely treatment and affordable coverage.
3. Removal of lifetime insurance caps and unreasonable out of pocket expenses.
Over the course of the summer, the Congress will attempt to reach agreement on health care reform. It is imperative that those who rely on plasma and recombinant therapies make their voices heard so their representatives will ensure continued access to these therapies.