Summary: Last week, Medicare made the decision to commit to paying $93,000 per patient to cover Provenge, a cancer drug that promises to give the average patient suffering from end-stage prostate cancer an extra four months–though it doesn’t appear to affect the progress of the disease.
For Wall Street investors who had put their money on the Dendreon, the drug’s manufacturer, this represents an enormous win. Cancer researchers also may have reason to cheer: Provenge could mark a small step forward, opening another door in the long quest to find a cure using a patient’s own immune cells. But it is not at all clear that the government should be paying for the treatment outside of controlled trials. For today’s patients, the danger is that Medicare coverage will give them false hope. After all if the government is willing to pay $93,000, thieir must be a chance that Provenge will save lives, right? Wrong.
The drug offers absolutely no promise of cure; at best it may extend life for a few months–or lengthen the process of dying, depending on your point of view. Meanwhile tax-payers and other Medicare recipients are the losers. If Medicare is paying for yet another $100,000 cancer drug that offers only a marginal benefit, it will have that much less to spend on other, more effective, if less exciting treatments. Finally the decision sets yet another expensive precedent, raising the odds that in the not-so-distant future everyone will have to pay higher Medicare taxes. At some point, Medicare must just say “No” to drug manufacturers–and begin negotiating for lower prices.
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Long-time readers may remember Provenge, the cancer drug I wrote about in 2007. In March of that year an FDA advisory panel voted 13 to 4 to recommend approval of Provenge. The next day, shares of Dendreon, the drug’s sponsor, doubled. But shareholders did not celebrate for long. Two of the dissenting votes were cast by the panel’s two prostate cancer specialists: Sloan-Kettering’s Howard Scher and the University of Michigan’s Maha Hussain. And they did not just vote “no”—following the hearing, both wrote to the FDA arguing that Dendreon offered no solid evidence that Provenge slow the progression of the disease.
The FDA listened. And it told the company it wouldn’t approve the drug until it had more data. That is when the two oncologists began receiving threatening e-mails, phone calls, and letters. Many were anonymous.