Gene- and cell therapy products offer a one-time treatment with expected long-term health benefits. These products are priced to reflect this expected value. However, this creates an upfront cost hurdle for health systems.
BioPharma companies and Health Insurers have experimented with novel payment models to tackle this challenge, including installment-based payments or milestone-based payments . However, these have only had limited traction in practice.
Through its role as an independent third party and using a proprietary approach, August offers a more effective solution that recognizes the differential needs of both parties and enables incentives to be aligned over time. August recognizes the need for BioPharma to be rewarded for successful innovation, while helping Health Insurers or other payers navigate the inherent performance uncertainty and affordability challenges of these cell- and gene therapy products.
August’s outcomes-based financial solutions (OBFS) ensure that BioPharma are paid upon use of their products, while allowing Health Insurers to pay as patients accrue health benefits over time. This is established by sourcing health outcome measurements through the August data platform and reporting these using externally validated value frameworks. Hence offering objectivity and transparency to all involved.