phrma logo

PhRMA

PhRMA Sites

Login

Explore Member-Only Resources

Access exclusive advocacy, policy, and research materials through the member site.

Login now

About

About

Our Agenda

Our Agenda

Policy Issues

We believe that patients should have access to innovative medicines.

Learn More

Innovation Ecosystem

Intellectual Property

Research & Development

Future of Medicine

Government Price Setting

International

Innovation Ecosystem

Patient Access & Affordability

PBMs & Middlemen

Hospitals and 340B

Insurance Coverage

Cost of Medicines

Medicare & Medicaid

Patient Access & Affordability

Resources

Our mission is to conduct effective advocacy for public policies that encourage the discovery of important, new medicines for patients by biopharmaceutical research companies.

Learn More

Resources

Resources

Newsroom

Newsroom

Blog

Blog

America's Medicines

PhRMA Foundation

PhRMA Foundation Logo

Voters for Cures

VotersForCures.org Logo

Working for Cures

workersforcures.org logo

This is Innovation

Innovation.org logo

View More

Search in PhRMA

Find resources, news, and articles related to policy issues and scientific innovation.

What are you looking for?

Most Recent

Policy Paper

Press

Blog

Report

Fact Sheet

Event

Resource

Pages

Leader

Author

Comment

not used title

not used title

Concerns about the cost of health care have led to calls for the use of health technology assessments or HTAs by the federal government. This would allow government agencies to make important decisions about patient access to health care based on their determination of the value of new tests and treatments. In this series, we’ll explore how this controversial practice:

  • Ignore differences in diverse populations
  • Limit access to beneficial treatment options
  • Reinforce — rather than reduce — health disparities

Value assessments are one of many tools that support better value in health care. These assessments need to reflect what matters to patients, address health disparities, be open and transparent, look holistically at services provided across the health care system, support doctor-patient decision-making and be based on rigorous science.

Unfortunately, health technology assessments, or HTAs, do not fit those parameters. By relying on rigid averages, HTAs lead to one-size-fits-all access restrictions, which can discriminate against disadvantaged communities and undermine efforts to advance health equity.

Many forms of HTA rely on the controversial quality-adjusted life years, or QALYs. This metric can lead to inherent biases that undervalue treatments for individuals within marginalized communities, such as communities of color and patients with disabilities. Here’s how that oftentimes happens: 

  • Those in lower-income communities and communities of color can experience lower life expectancy and greater disease burden due to underlying health inequities. As a result of disparities in life expectancy, researchers found that QALY-based methods result in the value of a life-saving treatment for Black patients being automatically up to 10% less valuable than for white patients.

  • Similar problems occur in people with disabilities. QALYs can assign a lower value to health improvements for people with disabilities because QALYs erroneously assign them lower total “quality of life” potential.

By ignoring population diversity, HTAs can reinforce health disparities and result in access barriers that make it harder for underserved populations to receive the treatments they need. Researchers recognize these shortcomings in current HTA methods and are encouraging steps to close those gaps:

  • The Innovation and Value Initiative: “Structural deficiencies in the models that underlie value assessment have perpetuated health inequities. Communities of color and other groups are generally not represented in the data used to make health care decisions, routinely disadvantaging them.”

  • Researchers at RAND: “The current cultural moment in medicine makes wider acceptance and use of more inclusive methods in HTA possible. We believe seizing this opportunity will fortify the ethical foundations of our work. We are calling on researchers to stop business as usual and to apply an inclusion and an equity lens to all we do…”

Value assessments and HTAs should not be used by health plans, government agencies or other payers to impose one-size-fits-all standards or deny needed care to patients. Instead, all stakeholders need to do more to ensure that health care is delivered equitably. Investing in better data that recognize disparities in health outcomes can help. Ultimately, we can move toward a value-driven health care system that works better for patients by reflecting what matters to all patients.

Learn more at phrma.org/policy-issues/value-assessment.

Katie Koziara

Katie Koziara is Senior Director of public affairs at PhRMA focusing on the organization’s executive visibility work and media relations strategy. She previously ran the social media strategy for a D.C.-based non-profit working on federal management and leadership issues. Katie earned her B.A. in Public Policy from the University of Michigan’s Ford School and is currently earning her M.A. in Fiction Writing from Johns Hopkins University.

Katie Koziara

New analysis: Flawed assessments of a medicine’s value jeopardize patient access

April 11, 2024

Using traditional HTAs to determine coverage threatens patient access to medicine

December 14, 2022

Traditional HTAs keep diverse patients out of the conversation

December 7, 2022

Traditional HTA methods treat everyone like the “average” patient

November 7, 2022

Value assessment should include all aspects of value that matter to patients

August 10, 2022

You won’t fix what you don’t value: Two reasons why traditional cost-effective analyses can perpetuate health inequities

June 16, 2022

PhRMA presents research at ISPOR 2022

May 26, 2022

Creating a new patient risk paradigm in American health care

May 18, 2021

How HTA-based price controls could worsen health outcomes and health disparities

Value Assessment

How HTA-based price controls could worsen health outcomes and health disparities

November 22, 2022

How HTA-based price controls could worsen health outcomes and health disparities

Stay current on policy making

Sign up for email updates and follow us on social. 

About

Our Agenda

Policy Issues

Resources

Blog

Contact Us

Privacy Policy

Terms of Service

Facebook

Facebook

X

Twitter X

LinkedIn

LinkedIn

Instagram

instagram logo

America's Medicines

PhRMA Foundation

Voters for Cures

Working for Cures

Innovation.org

Please type your email

Success!

You've been added to the list