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INITIAL MEDICAL POLICY AND
MODEL COVERAGE GUIDELINES
WEBINAR: POLICIES FOR NEXT GEN
SEQUENCING IN ONCOLOGY
Sean Tunis, MD, MSc, President and CEO
Donna A. Messner, PhD, Vice President, Sr. Research Director
November 24, 2015
WHO WE ARE
The Center for Medical Technology Policy (CMTP): independent, non-profit
501(c)(3) organization…aims to make health care more effective and affordable
by improving the quality, relevance, and efficiency of health care research
We are committed to engaging all relevant stakeholders…
• in research design, implementation, and dissemination
• in the development of new policy approaches for evaluating and paying for
promising new medical technologies
Green Park Collaborative-USA (GPC-USA) is a major initiative of CMTP:
• a neutral forum to support dialogue and consensus among stakeholders on
methodological standards for clinical research and
• focused on real-world effectiveness and value, emphasizing evidence
expectations of payers, informed by the views of patients and clinicians.
KEY THEMES FOR WEBINAR
What
challenge do
we work to
address?
What
conclusions
have we
reached so
far?
Where do
we go from
here?
Panel
perspectives
Group
questions
BACKGROUND
What is the challenge we seek
to address?
CONCEPTS FOR GENOMIC ASSAY EVALUATION
Clinical utility
Clinical
benefit to
patient when
test is used
for care
Clinical validity
Variant is
significantly
correlated with a
phenotype of
interest
Analytic
validity
Assay
identifies
presence or
absence of a
variant of
interest
COVERAGE BOTTLENECK
In past, large proportion of genetic
tests on market have failed to gain
positive coverage decisions
Coverage reviews often never
done due to lack of clinical utility
studies1
Possible reasons:
For some tests, there is no benefit
Lack of clarity over required
studies
Lack of incentives/infrastructure to
conduct necessary studies 1. Hresko A & Haga SB. Insurance
coverage policies for personalized
medicine. J Pers Med 2012;2:201-16.
CHALLENGE: SHIFT FROM “TEST” TO “SEQUENCING”
Past and Continuing
Molecular
Pathology Methods
Single
mutation
Single gene
Few genes
Genomic Analysis:
Clinically Used Now
Gene Panels
Whole exome
Potential Future
Uses of Genomics
Whole
Genome
Transcriptome
(RNA)
Adapted from College of American Pathologists, Genomics Resource Guide v. 5.0
Large-scale sequencing
Many
answers
per
question
Many
questions
per test
One test
per
question
One
answer per
test
11
NGS PROJECT PHASE 1
Approach and
Recommendations to Date
NGS PROJECT OVERVIEW
Kickoff workshop
July 2014
Teleconferences
Multi-stakeholder
deliberation of
key questions
Fall 2014 – Spring
2015
In-Person Conference
April 2015
Wrap-up
teleconferences
May and June
2015
Demonstrating
the Clinical
Utility of Next
Generation
Sequencing in
Oncology,
Meeting
Summary
Initial Medical Policy and
Model Coverage Guidelines
for Clinical Next Generation
Sequencing in Oncology,
Report and
Recommendations
RECOMMENDATION: COLLEGE OF AMERICAN
PATHOLOGISTS ACCREDITATION
Payers assess
utility – not analytic
performance
How can they
have confidence in
testing validity,
consistency?
Require covered
laboratories to
participate in new
CAP NGS
accreditation
• Includes wet-bench,
dry-bench proficiency
testing
• CAP/CMS must allow
transparency for
payers
Challenge
Recommendation
RECOMMENDATION: COVERAGE OF SMALL PANELS
How to cover
panels that
analyze many
different genes
and variants at
one time?
Cover NGS panels
conforming to 5-to-
50 CPT codes when:
• >= 5 guideline-
directed genes
sequenced for
patient care
• Panel cost <= cost
of sequencing
individual genes by
other methods
Challenge
Recommendation
WHAT ABOUT LARGER PANELS?
• No consensus on covering >50 gene panels when smaller
panels can address guideline-directed patient care
– Some say: do comprehensive tumor profiling on 1st
diagnosis; don’t wait until patient has advanced disease
and is heavily pretreated to get full picture
– Payers respond: benefit of doing so is unproven
• GPC report: consider covering >50 panels when patient
has unknown primary site, no standard treatment, or
exhausted treatment options
– Topic for future discussion
NGS PROJECT PHASE 2
Looking ahead
MORE RAPID LEARNING IMPERATIVE
• Need to investigate clinical
significance of genomic variants
more rapidly
• “Extra” variant data on covered
panels represents potentially rich
source of info for research
• Topics for future discussion:
• How can payers use policy
levers to facilitate high-quality
data collection?
• How can various data collection
efforts be made interoperable?
MORE SEQUENCING AND THE EVIDENCE NEEDED
Additional Discussion Points
• What is place of large panels, whole
exome, whole genome sequencing?
• What evidence is needed to support
coverage?
• Will high-quality registries and
observational studies support coverage?
RATIONAL COVERAGE OF OFF-LABEL USE
Issue
How to pay for off-label use of
molecularly-targeted therapies when
clinically justified?
Proposal for discussion:
pharma and payers share risk
Pharma provides off-label agent for first
3 months of treatment
(expanded access or other program)
If patient exhibits benefit after 3 months
(stable disease), health plan begins to
cover treatment on month 4.
PANELIST PERSPECTIVES
Jeff Allen, PhD
Executive
Director
Friends of
Cancer Research
Dane Dickson,
MD
Chief Executive
Officer
Molecular
Evidence
Development
Consortium
Robert
Dumanois
Manager,
Reimbursement
Strategy
ThermoFisher
Scientific
Michael
Kolodziej, MD
National Medical
Director,
Oncology
Solutions
Aetna
Vincent Miller,
MD
Chief Medical
Officer
Foundation
Medicine
FOR MORE INFORMATION
Get involved!
To learn more, contact:
Marty Johnson
GPC Marketing & Project Coordinator
marty.johnson@cmtpnet.org

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Initial Medical Policy and Model Coverage Guidelines

  • 1. INITIAL MEDICAL POLICY AND MODEL COVERAGE GUIDELINES WEBINAR: POLICIES FOR NEXT GEN SEQUENCING IN ONCOLOGY Sean Tunis, MD, MSc, President and CEO Donna A. Messner, PhD, Vice President, Sr. Research Director November 24, 2015
  • 2. WHO WE ARE The Center for Medical Technology Policy (CMTP): independent, non-profit 501(c)(3) organization…aims to make health care more effective and affordable by improving the quality, relevance, and efficiency of health care research We are committed to engaging all relevant stakeholders… • in research design, implementation, and dissemination • in the development of new policy approaches for evaluating and paying for promising new medical technologies Green Park Collaborative-USA (GPC-USA) is a major initiative of CMTP: • a neutral forum to support dialogue and consensus among stakeholders on methodological standards for clinical research and • focused on real-world effectiveness and value, emphasizing evidence expectations of payers, informed by the views of patients and clinicians.
  • 3. KEY THEMES FOR WEBINAR What challenge do we work to address? What conclusions have we reached so far? Where do we go from here? Panel perspectives Group questions
  • 4. BACKGROUND What is the challenge we seek to address?
  • 5. CONCEPTS FOR GENOMIC ASSAY EVALUATION Clinical utility Clinical benefit to patient when test is used for care Clinical validity Variant is significantly correlated with a phenotype of interest Analytic validity Assay identifies presence or absence of a variant of interest
  • 6. COVERAGE BOTTLENECK In past, large proportion of genetic tests on market have failed to gain positive coverage decisions Coverage reviews often never done due to lack of clinical utility studies1 Possible reasons: For some tests, there is no benefit Lack of clarity over required studies Lack of incentives/infrastructure to conduct necessary studies 1. Hresko A & Haga SB. Insurance coverage policies for personalized medicine. J Pers Med 2012;2:201-16.
  • 7. CHALLENGE: SHIFT FROM “TEST” TO “SEQUENCING” Past and Continuing Molecular Pathology Methods Single mutation Single gene Few genes Genomic Analysis: Clinically Used Now Gene Panels Whole exome Potential Future Uses of Genomics Whole Genome Transcriptome (RNA) Adapted from College of American Pathologists, Genomics Resource Guide v. 5.0 Large-scale sequencing Many answers per question Many questions per test One test per question One answer per test 11
  • 8. NGS PROJECT PHASE 1 Approach and Recommendations to Date
  • 9. NGS PROJECT OVERVIEW Kickoff workshop July 2014 Teleconferences Multi-stakeholder deliberation of key questions Fall 2014 – Spring 2015 In-Person Conference April 2015 Wrap-up teleconferences May and June 2015 Demonstrating the Clinical Utility of Next Generation Sequencing in Oncology, Meeting Summary Initial Medical Policy and Model Coverage Guidelines for Clinical Next Generation Sequencing in Oncology, Report and Recommendations
  • 10. RECOMMENDATION: COLLEGE OF AMERICAN PATHOLOGISTS ACCREDITATION Payers assess utility – not analytic performance How can they have confidence in testing validity, consistency? Require covered laboratories to participate in new CAP NGS accreditation • Includes wet-bench, dry-bench proficiency testing • CAP/CMS must allow transparency for payers Challenge Recommendation
  • 11. RECOMMENDATION: COVERAGE OF SMALL PANELS How to cover panels that analyze many different genes and variants at one time? Cover NGS panels conforming to 5-to- 50 CPT codes when: • >= 5 guideline- directed genes sequenced for patient care • Panel cost <= cost of sequencing individual genes by other methods Challenge Recommendation
  • 12. WHAT ABOUT LARGER PANELS? • No consensus on covering >50 gene panels when smaller panels can address guideline-directed patient care – Some say: do comprehensive tumor profiling on 1st diagnosis; don’t wait until patient has advanced disease and is heavily pretreated to get full picture – Payers respond: benefit of doing so is unproven • GPC report: consider covering >50 panels when patient has unknown primary site, no standard treatment, or exhausted treatment options – Topic for future discussion
  • 13. NGS PROJECT PHASE 2 Looking ahead
  • 14. MORE RAPID LEARNING IMPERATIVE • Need to investigate clinical significance of genomic variants more rapidly • “Extra” variant data on covered panels represents potentially rich source of info for research • Topics for future discussion: • How can payers use policy levers to facilitate high-quality data collection? • How can various data collection efforts be made interoperable?
  • 15. MORE SEQUENCING AND THE EVIDENCE NEEDED Additional Discussion Points • What is place of large panels, whole exome, whole genome sequencing? • What evidence is needed to support coverage? • Will high-quality registries and observational studies support coverage?
  • 16. RATIONAL COVERAGE OF OFF-LABEL USE Issue How to pay for off-label use of molecularly-targeted therapies when clinically justified? Proposal for discussion: pharma and payers share risk Pharma provides off-label agent for first 3 months of treatment (expanded access or other program) If patient exhibits benefit after 3 months (stable disease), health plan begins to cover treatment on month 4.
  • 17. PANELIST PERSPECTIVES Jeff Allen, PhD Executive Director Friends of Cancer Research Dane Dickson, MD Chief Executive Officer Molecular Evidence Development Consortium Robert Dumanois Manager, Reimbursement Strategy ThermoFisher Scientific Michael Kolodziej, MD National Medical Director, Oncology Solutions Aetna Vincent Miller, MD Chief Medical Officer Foundation Medicine
  • 18. FOR MORE INFORMATION Get involved! To learn more, contact: Marty Johnson GPC Marketing & Project Coordinator marty.johnson@cmtpnet.org