By working with August, product innovators are able to access outcomes-based financial solutions that can help address the two key concerns of health insurers and other payers, being affordability and performance uncertainty.
Affordability
While your product has been demonstrated to be efficacious and the price may be considered be valuable – falling in the acceptable range of cost-effectiveness – there is an increasing challenge for health insurers and other payers to absorb the upfront cost density of these therapies. Especially as the aggregate number of products and eligible patient populations is expected to skyrocket in the next 10 years. A marble of precision medicine, but an affordability issue for the healthcare system.
Performance Uncertainty
Your product has shown to address a significant unmet need and produce disease-modifying and potential curative outcomes for patients. Yet some uncertainties remain for health insurers and other payers. There are likely differences between the patient cohort treated in clinical trials and the real-world patient population. This produces a concern on generalization of treatment benefit. Next to that, there has typically not been enough observation time to determine if the treatment benefit sustains. This leads to a durability concern. The good news is that these are surmountable with the right solution.
The August solution for these needs is two-fold:
1. enable payment over time for health insurers and other payers, by converting a product into a series of outcomes. This aligns the business models of both biopharma and health insurers/payers.
2. track and report patient outcomes following therapy in order to address the generalization and durability concerns, and further mature the product’s value package.
Through its multi-input outcomes data tracking platform, August is able to produce high quality outcomes data. August does so in a secure yet transparent environment, so that all parties involved can monitor progress. Furthermore, there is a valuable opportunity to harmonize this activity with any post-approval regulatory data collection requirements.