"Innovative therapies will have littleimpact on healthcosts;" BIO

"Innovative therapies will have little impact on health costs:" BIO

The widening use of new, innovative biopharmaceutical treatments for diseases, such as cancer, multiple sclerosis and heart disease, will have a limited impact on health care costs for private payers over the next several years, according to an independent study released by the US Biotechnology Industry Organization.

The study, prepared by the international actuarial firm Milliman and titled Realizing the Value of Food and Drug Administration-Approved Therapies, found new innovative therapies, including both drugs and biologics, will add 1% to the health care costs covered by private commercial payers, such as insurance companies and employer-sponsored health plans. This increase translates to an additional claims cost to private payers of about $5.00 per member a month. Moreover, the study found that private payers can make minor changes in their benefit plans to assure the affordability of innovative therapies for their members.