Targeted erlotinib for first-line treatment of advanced non-small cell lung cancer: a budget impact analysis.
OBJECTIVE
A recent phase III trial showed that patients with advanced non-small cell lung cancer (NSCLC) whose tumors harbor specific EGFR mutations significantly benefit from first-line treatment with erlotinib compared to chemotherapy. This study sought to estimate the budget impact if coverage for EGFR testing and erlotinib as first-line therapy were provided in a hypothetical 500,000-member managed care plan.


METHODS
The budget impact model was developed from a US health plan perspective to evaluate administration of the EGFR test and treatment with erlotinib for EGFR-positive patients, compared to non-targeted treatment with chemotherapy. The eligible patient population was estimated from age-stratified SEER incidence data. Clinical data were derived from key randomized controlled trials. Costs related to drug, administration, and adverse events were included. Sensitivity analyses were conducted to assess uncertainty.


RESULTS
In a plan of 500,000 members, it was estimated there would be 91 newly diagnosed advanced NSCLC patients annually; 11 are expected to be EGFR-positive. Based on the testing and treatment assumptions, it was estimated that 3 patients in Scenario 1 and 6 patients in Scenario 2 receive erlotinib. Overall health plan expenditures would increase by $0.013 per member per month (PMPM). This increase is largely attributable to erlotinib drug costs, in part due to lengthened progression-free survival and treatment periods experienced in erlotinib-treated patients. EGFR testing contributes slightly, whereas adverse event costs mitigate the budget impact. The budget impact did not exceed $0.019 PMPM in sensitivity analyses.


CONCLUSIONS
Coverage for targeted first-line erlotinib therapy in NSCLC likely results in a small budget impact for US health plans. The estimated impact may vary by plan, or if second-line or maintenance therapy, dose changes/interruptions, or impact on patients' quality-of-life were included.
University of Washington, Pharmaceutical Outcomes Research and Policy Program, Department of Pharmacy , Seattle, WA 98195 , USA.
Preeti S
PS
Bajaj
David L
DL
Veenstra
Hans-Peter
HP
Goertz
Josh J
JJ
Carlson
D000328:Adult; D000368:Aged; D002017:Budgets; D002289:Carcinoma, Non-Small-Cell Lung / Q000188:drug therapy* / Q000191:economics / Q000473:pathology; D003362:Cost-Benefit Analysis; D016527:Drug Costs; D000069347:Erlotinib Hydrochloride; D005260:Female; D059033:For-Profit Insurance Plans / Q000191:economics; D006801:Humans; D008297:Male; D008329:Managed Care Programs / Q000191:economics*; D008875:Middle Aged; D047428:Protein Kinase Inhibitors / Q000191:economics* / Q000627:therapeutic use; D011799:Quinazolines / Q000191:economics* / Q000627:therapeutic use; D016032:Randomized Controlled Trials as Topic; D018426:SEER Program; D014481:United States
D047428:Protein Kinase Inhibitors; D011799:Quinazolines; D000069347:Erlotinib Hydrochloride
Budget impact; Cost; Erlotinib; Non-small cell lung cancer