A study on the international policy of cancer drug expenditures in countries with universal healthcare

Abstract

Cancer is the leading cause of death in developed countries; it is also one of the most costly diseases to treat. In the past decade, the cost of new cancer therapies has risen exponentially. This, combined with the increasing cost of healthcare globally, represents a significant economic burden for many if not all national governments. This paper examines 5 different countries (Netherlands, Australia, the U.K., Canada and the U.S.) and their respective healthcare system. As well, this paper looks at what policies are in place to ensure equitable care while evaluating whether these new costly therapies are justifiably priced. Each country has a different mechanism and/or threshold for evaluating cost-effectiveness and therefore determining whether a drug will be publicly funded. Finally, this paper suggests three different solutions to make new cancer therapies more cost-effective: government price negotiations, tying drug approval to price negotiation, and pricing drugs based on their expected life outcomes.