The increasing use of drugs in the specialty medical care setting is an important determinant of national prescription drug spending trends.
1,2 Cancer is the second leading cause of death in the United States, and Medicare is the largest insurer of cancer-related treatment.
3 The use of physician-administered specialty drugs is central to contemporary cancer treatment among the elderly (age ≥ 65 years).
1,4–6 For the elderly insured under Medicare, physician-administered and some oral anticancer drugs (chemotherapies) are covered and reimbursed under the Part B program; in contrast, most oral drugs used in primary care are covered under Part D. Physicians purchase Part B drugs from wholesalers, paying wholesale acquisition costs (WACs), and are reimbursed by Medicare, paying average sales price (ASP) plus 6%.
The generic entry of patent-protected drugs is considered to be an important cost-containment policy in the United States.
7 The loss of patent protection for drugs increases competition among manufacturers and consequently decreases prices.
8 In practice, physician reimbursement declines for the use of Part B drugs in the care of Medicare-insured patients after generic entry (the Centers for Medicare and Medicaid Services [CMS] rely upon US Food and Drug Administration [FDA] approval and authoritative compendia, like National Comprehensive Cancer Network [NCCN], to determine what uses of physician-administered anticancer drugs to cover and reimburse).
9 Several federal policies aim to accelerate access to generic drugs and consequently reduce spending by Medicare.
10 A 2009 report released by the Office of the Inspector General (OIG) recommends CMS consider reducing the 6-month lag between generic entry and CMS reimbursement declines for Part B drugs, generating significant savings.
11 Others have suggested the adoption by CMS of other policies to encourage guideline-consistent and cost-conscious specialty treatment choices.
12,13The anticipated cost savings to CMS of policies that would accelerate access to generic drugs and/or close the physician reimbursement lag for the use of Part B drugs to treat the elderly are predicated on the assumption that the use of the drug undergoing patent expiration would remain constant after generic entry.
14–16 Also, challenges to the so-called Paragraph IV section of the Hatch-Waxman Act, providing 180-day marketing exclusivity for generic manufacturers first to file an abbreviated new drug applications to the FDA, are active areas of litigation. Court decisions commonly hinge upon whether use of the molecule in question is constant before and after generic entry occurs in the US market. Previous research has examined whether this assumption is justified in practice, focusing exclusively on observed changes in treatment patterns associated with the generic entry of Part D drugs.
17–20 Lackdawalla et al,
17 Berndt et al,
18 Huskamp et al,
19 and Huckfeldt et al
20 found that Part D drug patent expirations coincided with stabilization or declines in use of the drugs across branded and generic formulations up to 12 months after patent expiration. We are aware of no empirical research examining whether the generic entry of Part B–covered chemotherapies is associated with changes in use.
21We examined the effects of patent expiration on the use of chemotherapies for the treatment of metastatic colorectal cancer (MCRC) among the elderly between 2006 and 2009 using interrupted cross-sectional time series methods with case control. MCRC is a good cancer with which to examine the potential impact of generic entry on treatment use among the elderly, because colorectal cancer is the third most prevalent cancer in the United States, and the average age of MCRC diagnosis is 70 years.
3The analysis exploits the presence of two close therapeutic substitutes for MCRC: one underwent generic entry in February 2008 (irinotecan), whereas the other (oxaliplatin) was available only in branded formulation during this period. According to the NCCN Drugs and Biologics Compendium, contemporary treatment for MCRC involves multiple drugs; the gold standard for first- and second-line MCRC treatments is either irinotecan, fluorouracil, and leucovorin (FOLFIRI), first approved in 1996, or oxaliplatin, fluorouracil, and leucovorin (FOLFOX), first approved in 2002. Randomized controlled trials released in 2005 suggested FOLFIRI and FOLFOX produce equivalent mortality and morbidity gains among patients with MCRC.
22 In practice, FOLFOX is the preferred therapy over FOLFIRI for elderly patients because of the perceived relative adverse effect profile of FOLFIRI, mainly involving diarrhea. In 2007, guideline-recommended therapy for first-line treatment of MCRC was altered to include FOLFIRI and FOLFOX as well as bevacizumab plus FOLFOX, bevacizumab plus FOLFIRI, and combinations including capecitibine. Between February and March 2008, generic entry into the irinotecan market was significant; six biopharmaceutical firms received FDA approval.
11 Concurrent with generic entry, clinical evidence supporting irinotecan and oxaliplatin use in MCRC changed. In April 2008, a randomized controlled trial supported the use of FOLFOX in combination with bevacizumab as a potential first-line therapy.
23 At the American Society of Clinical Oncology (ASCO) meetings in 2007 and 2008, Van Cutsem et al
24,25 presented results of the CRYSTAL (Cetuximab Combined With Irinotecan in First-Line Therapy for Metastatic Colorectal Cancer) trial, supporting the use of FOLFIRI with cetuximab therapy as first-line therapy.
26 New evidence supporting the use of irinotecan in combination with cetuximab in second-line therapy (EPIC trial [Erbitux Plus Irinotecan for Metastatic Colorectal Cancer]) was also released.
27 We are unaware of any other changes in guideline-recommended treatment for MCRC based on a search of the ASCO annual meeting proceedings (accepted abstracts searched from 2005 to 2010), NCCN guidelines, and the FDA approvals Web site.
Consequently, the example allows us to study potential changes in the use of one chemotherapy (irinotecan) after generic entry, holding constant the impact of treatment choice on likely patient benefit and unaffected by coincident changes in patient composition or available therapeutic substitutes. The potential biases introduced into the analyses resulting from concurrent changes in multidrug recommended regimens are addressed under Discussion.