pricing & reimbursement in italy · pricing & reimbursement in italy at a glance although...

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PRICING & REIMBURSEMENT IN ITALY AT A GLANCE Although there is a national pricing and reimbursement process in Italy, regions control their own budgets and formularies. Italy has pioneered risk-sharing agreements, employing them for over a decade; manufacturers of expensive treatments, or those with uncertain benefits, should be prepared to negotiate on a payment-by-result or cost-sharing basis.

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Page 1: PRICING & REIMBURSEMENT IN ITALY · PRICING & REIMBURSEMENT IN ITALY AT A GLANCE Although there is a national pricing and reimbursement process in Italy, regions control their own

PRICING & REIMBURSEMENT IN ITALY

AT A GLANCE

Although there is a national pricing and reimbursement process in Italy, regions control their own budgets and formularies.

Italy has pioneered risk-sharing agreements, employing them for over a decade; manufacturers of expensive treatments, or those with uncertain benefits, should be prepared to negotiate on a payment-by-result or cost-sharing basis.

Page 2: PRICING & REIMBURSEMENT IN ITALY · PRICING & REIMBURSEMENT IN ITALY AT A GLANCE Although there is a national pricing and reimbursement process in Italy, regions control their own

Reimbursement submission

Submission review

Assessment of innovation

Submission of additional information

Price negotiation Price negotiation

Managed entry agreement proposed

Price agreement

Regional HTARegional formulary

listing

If therapeutic need and value and quality of evidence are found to be high, the drug will be classed as innovative* and should be reimbursed by the regions.

Regions may charge a copayment on Class A drugs, which were previously a small flat fee (~€3), but may now include a percentage of the drug price to encourage patients to select cheaper drugs if possible.

Class C drugs are freely priced by the manufacturer**, but must be sold at 50% discount to hospitals.

The majority of the regions in Italy have a binding formulary to which drugs need to be added in order to be prescribed. Five regions have formal HTA processes, while 13 conduct some HTA activity.

For hospital-only drugs, orphan drugs or drugs with exceptional therapeutic or social relevance, pricing/reimbursement negotiations can begin before marketing authorisation, and may take up to a maximum of 100 days***.

In addition to cost effectiveness and risk-benefit ratio vs comparators, CPR also considers the:

• Financial impact on the national health system

• Expected sale volumes

• Prices and consumption in other European countries

Italy has been employing risk-sharing agreements for over a decade.

CTS OF AIFA

MANUFACTURER

CPR OF AIFA

REGIONS

POSSIBLE STEP *First-in-class drugs are classified as innovative for a maximum of 36 months, potentially innovative drugs can be reassessed after 18 months; **The price must be the same across the country and can only be increased every two years in line with inflation; ***This means that drugs may be commercialised prior to receiving a classification from AIFA (automatically assigned Class “Cnn”) and may be reimbursed by some regions or paid for by patients directly

AIFA=Agenzia Italiana del Farmaco; CPR=Comitato Prezzi e Rimborso; CTS=Commissione Tecnico Scientifica; HTA=Health Technology Assessment

1. Giovanni Murri. Registri di Monitoraggio AIFA. 2017.

2. Prada M et al. Med Access @ point care 2017;1(1):e29–36.

PRICING AND REIMBURSEMENT PROCESS KEY CONSIDERATIONS IN PRACTICE

Reimbursement categorisation

Managed entry agreements 20171

Presence of regional formulary and mean time to patient access following national

decision (days)1

Presence of local binding formularies

Presence of local non-binding formularies

Absence of local formularies

Presence of area formularies

Cost-sharing

Capping

Cost-sharing + capping

Payment-by-result

Payment-by-result + capping

210

day

sV

aria

ble

100

–180

day

s

Class Reimbursement Applicable drugs

A ≤100% Innovative, cost effective or essential drugs for chronic and serious diseases; can be limited to particular patients

H ≤100% Drugs that are fully reimbursed in the hospital setting and require specialist supervision

C 0% Drugs without proven efficacy or with proven efficacy for minor diseases; over-the-counter products

29

7167

3

234.7

205.9

102.5127.2

264.1

127.2

196.7

208.4

213.1

193.0251.3

172.2

275.4

167.5

140.6

279.2

149.7

175.0

258.6

228.5

n=107

≥5 days before negotiation date

Page 3: PRICING & REIMBURSEMENT IN ITALY · PRICING & REIMBURSEMENT IN ITALY AT A GLANCE Although there is a national pricing and reimbursement process in Italy, regions control their own

Reimbursement submission

Submission review

Assessment of innovation

Submission of additional information

Price negotiation Price negotiation

Managed entry agreement proposed

Price agreement

Regional HTARegional formulary

listing

If therapeutic need and value and quality of evidence are found to be high, the drug will be classed as innovative* and should be reimbursed by the regions.

Regions may charge a copayment on Class A drugs, which were previously a small flat fee (~€3), but may now include a percentage of the drug price to encourage patients to select cheaper drugs if possible.

Class C drugs are freely priced by the manufacturer**, but must be sold at 50% discount to hospitals.

The majority of the regions in Italy have a binding formulary to which drugs need to be added in order to be prescribed. Five regions have formal HTA processes, while 13 conduct some HTA activity.

For hospital-only drugs, orphan drugs or drugs with exceptional therapeutic or social relevance, pricing/reimbursement negotiations can begin before marketing authorisation, and may take up to a maximum of 100 days***.

In addition to cost effectiveness and risk-benefit ratio vs comparators, CPR also considers the:

• Financial impact on the national health system

• Expected sale volumes

• Prices and consumption in other European countries

Italy has been employing risk-sharing agreements for over a decade.

CTS OF AIFA

MANUFACTURER

CPR OF AIFA

REGIONS

POSSIBLE STEP *First-in-class drugs are classified as innovative for a maximum of 36 months, potentially innovative drugs can be reassessed after 18 months; **The price must be the same across the country and can only be increased every two years in line with inflation; ***This means that drugs may be commercialised prior to receiving a classification from AIFA (automatically assigned Class “Cnn”) and may be reimbursed by some regions or paid for by patients directly

AIFA=Agenzia Italiana del Farmaco; CPR=Comitato Prezzi e Rimborso; CTS=Commissione Tecnico Scientifica; HTA=Health Technology Assessment

1. Giovanni Murri. Registri di Monitoraggio AIFA. 2017.

2. Prada M et al. Med Access @ point care 2017;1(1):e29–36.

PRICING AND REIMBURSEMENT PROCESS KEY CONSIDERATIONS IN PRACTICE

Reimbursement categorisation

Managed entry agreements 20171

Presence of regional formulary and mean time to patient access following national

decision (days)1

Presence of local binding formularies

Presence of local non-binding formularies

Absence of local formularies

Presence of area formularies

Cost-sharing

Capping

Cost-sharing + capping

Payment-by-result

Payment-by-result + capping

210

day

sV

aria

ble

100

–180

day

s

Class Reimbursement Applicable drugs

A ≤100% Innovative, cost effective or essential drugs for chronic and serious diseases; can be limited to particular patients

H ≤100% Drugs that are fully reimbursed in the hospital setting and require specialist supervision

C 0% Drugs without proven efficacy or with proven efficacy for minor diseases; over-the-counter products

29

7167

3

234.7

205.9

102.5127.2

264.1

127.2

196.7

208.4

213.1

193.0251.3

172.2

275.4

167.5

140.6

279.2

149.7

175.0

258.6

228.5

n=107

≥5 days before negotiation date

Page 4: PRICING & REIMBURSEMENT IN ITALY · PRICING & REIMBURSEMENT IN ITALY AT A GLANCE Although there is a national pricing and reimbursement process in Italy, regions control their own

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