Keywords
Hypertension, Diabetes, Ghana, Differential Pricing, LMIC, Non-Communicable Diseases, Universal Health Coverage
Hypertension, Diabetes, Ghana, Differential Pricing, LMIC, Non-Communicable Diseases, Universal Health Coverage
In this revised version, the manuscript provides a more detailed description of the AAI, and how the AAI has tacked the issue of access through diverse strategies. In addition, the introduction has been shortened, focusing on why NCDs matter, as suggested by both reviewers. We then describe the AAI as a potential solution to tackling the issue of access to NCD treatment. As the protocol has previously been published, instead of providing more details on the methodology of the AAI, we refer to the published protocol (which describes how the EML was chosen, which variables were studied, which health system strengthening interventions were implemented, etc.). We better define access, referring to the WHO/MSG definition, as well as one described by Jacobs et al. We also provided some of the results of the study and why it is important that access to NCD treatment is critical. We also refer to the experience the HIV epidemic has with differential pricing, while citing some of the challenges encountered by both NCDs and HIV. Finally, we cite the importance of political advocacy, again referring to the HIV experience in improving access and affordability. We also stress that differential pricing alone is NOT a solution, as health systems strengthening is also critical in improving NCD outcomes.
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Non-communicable diseases (NCDs), especially cardiovascular diseases, diabetes, and cancer, have emerged as the leading cause of premature deaths globally. Eighty-six per cent of these deaths are estimated to occur in low-and middle-income countries (LMIC), where they pose a serious public health threat1. There is evidence that shows that more than 9 million of all deaths attributed to non-communicable diseases (NCDs) occur before the age of 60. Of these "premature" deaths, 90% occurred in low- and middle-income countries1.
For many patients, the high cost of medicines constitutes a major barrier to access innovative patented medicines, but also to the World Health Organization (WHO) list of essential medicines, 92% of which are off-patent2. As the prevention and control of NCDs often requires life-long treatments, novel initiatives, which improve access and affordability, are needed. Health financing reforms and enhanced normative guidance are required for current financing strategies, such as health insurance (with or without co-payment), out-of-pocket expenditure, financing pools and pre-payment, in order to enhance patient access to medicines and overall health outcomes. Essential medicines used to treat NCDs tend to have limited availability and affordability, especially in public sector settings in LMICs, thus negatively impacting control of NCDs3–5. Approximately 90% of individuals in LMICs are estimated to use their own funds to purchase medicines, resulting in out-of-pocket expenditures for medicines being the highest expenditure after food, resulting in challenges with affordability, posing major burdens on government budgets4. A significant proportion of morbidity and mortality due to NCDs can be prevented if medicines are made accessible and affordable5.
The lack of available data on pharmaceutical expenditure, specifically on the types of medicines procured or sold, public and private sector spending, and the degree of access by key population subgroups was recently highlighted by an article in the Lancet6. It recommended that Governments and health systems create and maintain information systems for routine monitoring of data bearing on the affordability of essential medicines, as well as price and availability, in the public and private sectors7. The aim of this paper is to discuss differential pricing for the treatment of NCDs, as a financing scheme to help achieve Universal Health Care.
The Access and Affordability Initiative (AAI) is a multilateral collaboration between multiple stakeholders with the aim of improving access to and availability of essential medicines for the treatment of NCDs and strengthening of health systems. It brings together four major biopharmaceutical companies – Merck, Sharp and Dohme Corp. (MSD), a subsidiary of Merck & Co., Inc., Kenilworth, N.J., U.S.A., Novartis, Pfizer and Sanofi – and the Bill & Melinda Gates Foundation, who have initiated a public private partnership with the Ministries of Health in Ghana and the Philippines. AAI is one of the initiatives supporting Access Accelerated, a global partnership of a coalition of biopharmaceutical companies to address the barriers to access for NCDs in LMICs. Access Accelerated was launched at the World Economic Forum’s Annual Meeting in Davos by twenty-two leading biopharmaceutical companies to advance access to NCD prevention and care in low and lower-middle income countries7.
Through this novel initiative a prospective cohort of patients with hypertension and diabetes were followed in Ghana and the Philippines at multiple sites, allowing these countries, with the support of the Ministry of Health, as well as academic institutions, to study the effect of within-country differential pricing and health systems strengthening on several outcomes, including disease control, complications of diabetes and hypertension, as well as adherence. Health system strengthening activities included the development of clinical guidelines, training on supply chain and clinical management, education, counseling and strengthening of supply chain management. A detailed protocol of the GAAP study has been published elsewhere8. The essential medicines list (EML) that was supported by GAAP included medicines that are not included in National Health Insurance Scheme (NHIS). The NHIS Medicine List is generally based on the Essential Medicine List (EML) promulgated by the Ministry of Health and comprises a list of minimum medicine needs for a basic health-care system. However, preliminary unpublished data from an institutional appraisal performed at six pilot sites identified the following barriers to access to safe and effective medicines for the management of hypertension and diabetes: (a) inability of low- and middle-income patients to afford out of pocket medicines that are not on the NHIS; (b) medicine shortages or stock-outs, and (c) lack of availability of medicines preferred by prescribers. Therefore, alternative strategies that could supplement the NHIS would be crucial in addressing the limited range of medications on the NHIS Medicine List, as well as reducing the cost of out-of-pocket payments for non-insured medicines.
The initiative has provided a unique opportunity to examine whether differential pricing can improve access to affordable medicines in the developing world. Access has previously been defined by the Access to Medicine Framework (ATM) using the 4As, including ‘Availability’, ‘Accessibility’, ‘Acceptability’ and ‘Affordability’, with ‘Quality’ of products and services as a cross-cutting determinant. We define access from a health system’s perspective, rather than from a vertical framework (focused on supply), as described by Jacobs et al.9.
Though the study demonstrated that it is important that in order for differential pricing to be effective among low-income patients, it is critical to achieve a substantial price reduction to reflect equity and affordability.
The AAI has been able to demonstrate predictors for uncontrolled hypertension (care tertiary longer duration of hypertension diagnosis, poor adherence to therapy, reported difficulties in obtaining antihypertensive medications and number of antihypertensive medications prescribed) and uncontrolled diabetes (duration of diabetes diagnosis, absence of a health insurance scheme, the number of diabetes medicines). Through the AAI, control of both hypertension and diabetes improved with study interventions (increased frequency of follow-up, training of health care providers, improved supply chain, etc.)10,11.
Differential pricing, an approach used to price medicines based on the purchasing power of payers in different socioeconomic segments, within countries or between countries, has been shown to be beneficial and lead to improvement of access and affordability11,12.
Thus far, the use of differential pricing has generally been limited to vaccines, contraceptives, antimalarials and antiretrovirals in the context of the Global Fund and Global Alliance for Vaccine Initiative, where price reductions were achieved through such strategies as high-volume purchasing, reliable and adequate financing, public advocacy, negotiation, and market competition13,14. Some of the challenges in the roll out of differential pricing stand out, as this approach doesn’t completely address non-price barriers to access, such as challenges related to regulation and weak supply chain and health systems. With regards to supply chain challenges, frequent stockouts, inability to forecast accurately, inefficient distribution systems, or leakage of medicines for private resale, can all impact access15.
Therefore in order to improve access and affordability using differential pricing as a financing scheme, it is important that an integrated approach be utilized which includes robust partnerships between multiple stakeholders (governments, donors, biopharmaceutical companies, UN agencies, non-governmental organizations), as well as targeted efforts to strengthen supply chain and health systems. Health systems strengthening efforts should focus on improved information management systems, supply chain, capacity building of trained staff, etc.
As is the case with NCDS, HIV requires life-long treatment and ARVs are expensive. In 2000, the Accelerating Access Initiative first launched a differential pricing strategy for anti-retrovirals (ARVs)16. There are several lessons that can be learned from the HIV experience. First, differential pricing alone was not sufficient to lower the price of ARVs, as large-scale financing of HIV/AIDS treatment and the development of generic ARV markets started to become more prominent. Waning et al. also found that differential pricing for several ARVs were 23-498% higher than generic prices16,17
Our study demonstrated that differential pricing needs to be coupled with health systems strengthening in order to improve disease control. Reduction of out-of-pocket expenditure can also be achieved through co-payments (in countries with existing health insurance). Access to treatment alone is not sufficient, but rather education, counseling, improved supply chain and training of health care providers are all needed to improve disease control.
Differential pricing alone as a scheme does not lead to equity or affordability, as it primarily ensures that different prices are charged to different segments of the market for the same product, therefore focusing on the producer’s perspective18. Additional evidence will be needed to determine the generalizability of such an intervention in other LMIC to tackle the issue of access to treatment.
The AAI study has provided essential data on access to medicines, affordability of treatment, clinical outcomes, as well as out-of-pocket expenditure by rural and urban populations in both Ghana and the Philippines. This information system will be shared with the respective Ministries of Health in both countries and will assist in providing important policy recommendations to these respective Ministries.
Differential pricing is an instrument among many to increase affordability of medicines, which can contribute to UHC through reduced expenditure and greater access to medicines. Beneficiaries may still need to pay out-of-pocket, requiring co-payments, suggesting that the coverage component might not be completely addressed through differential pricing.
UHC is defined as the ability to access quality, needed health services, while ensuring that the use of these services does not expose the user to financial hardship. UHC is now a Sustainable Development Goal (SDG) goal: “Achieve UHC, including financial risk protection, access to quality essential health care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.” The concept of UHC ensures a “system-wide effective coverage combined with universal financial protection,” thus avoiding exorbitant out-of-pocket costs19. Out-of-pocket financing for chronic disorders poses a real barrier to increasing access to medicines for poor populations16.
Given the growing cost to the health system of poorly managed NCDs and of the limited availability of financial resources, targeted, cost-effective interventions are needed. Additional evidence will be required to examine the ability to implement differential pricing as a means to improve access to and affordability of medicines for the treatment of NCDs in a variety of contexts. “To explore viable health financing mechanisms and innovative economic tools supported by evidence” is a policy recommendation in the updated WHO Global Action Plan for the Prevention and Control of NCDs20.
The AAI presents one example of such an exploration through differential pricing of innovative medicines for the control of NCDs, coupled with health systems strengthening and may reveal an innovative means to improve access to critically needed medicines and thereby help curb the disturbing trends of excess morbidity and mortality from NCDs in LMICs. However, in order to ensure that access to treatment for NCDs becomes a global prioriry, increased political advocacy is required to ensure that medicines to treat NCDs become more affordable, as was the case with HIV21.
The views expressed in this article are those of the authors. Publication in Gates Open Research does not imply endorsement by the Gates Foundation.
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Is the rationale for the Open Letter provided in sufficient detail?
Partly
Does the article adequately reference differing views and opinions?
Partly
Are all factual statements correct, and are statements and arguments made adequately supported by citations?
Partly
Is the Open Letter written in accessible language?
Yes
Where applicable, are recommendations and next steps explained clearly for others to follow?
Partly
Competing Interests: No competing interests were disclosed.
Competing Interests: I am a friend and colleague of Dr. Linda Meta Mobula, though we have not formally collaborated on any research to date
Reviewer Expertise: Implementation science approaches to strengthen non-communicable disease care delivery
Is the rationale for the Open Letter provided in sufficient detail?
Yes
Does the article adequately reference differing views and opinions?
Partly
Are all factual statements correct, and are statements and arguments made adequately supported by citations?
Yes
Is the Open Letter written in accessible language?
Partly
Where applicable, are recommendations and next steps explained clearly for others to follow?
Partly
References
1. Moon S, Jambert E, Childs M, von Schoen-Angerer T: A win-win solution?: A critical analysis of tiered pricing to improve access to medicines in developing countries.Global Health. 2011; 7: 39 PubMed Abstract | Publisher Full TextCompeting Interests: No competing interests were disclosed.
Is the rationale for the Open Letter provided in sufficient detail?
Yes
Does the article adequately reference differing views and opinions?
Yes
Are all factual statements correct, and are statements and arguments made adequately supported by citations?
Yes
Is the Open Letter written in accessible language?
Partly
Where applicable, are recommendations and next steps explained clearly for others to follow?
Partly
Competing Interests: I am a friend and colleague of Dr. Linda Meta Mobula, though we have not formally collaborated on any research to date.
Reviewer Expertise: Implementation science approaches to strengthen non-communicable disease care delivery
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Version 1 23 Feb 18 |
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