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Ensuring appropriate payment for transformative therapies to secure patient access to CAR Ts

CAR T therapies first entered the market in late 2018. These transformative treatments for certain
types of cancer involve modifying a patient’s own cells to fight the cancer—producing a long term,
potentially curative response. Initially, CAR T therapy was administered to patients in the inpatient
hospital, where Medicare payments are bundled so that the hospital gets a single payment for the
entire hospital stay. The cost of the CAR T therapy greatly exceeded the payment rate the hospital
would receive, leading to concerns that hospitals would be reluctant to provide CAR T.

Download and read the approach and results.

CAR T therapies first entered the market in late 2018. These transformative treatments for certain
types of cancer involve modifying a patient’s own cells to fight the cancer—producing a long term,
potentially curative response. Initially, CAR T therapy was administered to patients in the inpatient
hospital, where Medicare payments are bundled so that the hospital gets a single payment for the
entire hospital stay. The cost of the CAR T therapy greatly exceeded the payment rate the hospital
would receive, leading to concerns that hospitals would be reluctant to provide CAR T.

Download and read the approach and results.

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Kevin Kirby

Managing Director
Washington, DC
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Clare Mamerow

Principal
Washington, DC