Current reimbursement landscape for companion diagnostic tests as a part of hospital or outpatient care
Many countries lack a specific framework or unified approach to reimbursement for companion diagnostic (CDx) tests. Reimbursement for CDx tests follows the same principles as the framework for regular in-vitro diagnostic tests.
In most European countries (Germany, Italy, Spain, and countries of the Nordic region), CDx tests performed during inpatient stays are included in the payment for hospital admission (DRG-based payment or global budget). Laboratories are funded using a global budget principle without a specific reimbursement framework. In general, laboratories introduce tests that are necessary from the clinical perspective. The fee-for-service model for CDx tests during hospital admission is used only in Belgium and in private for-profit hospitals in France.
In some European countries (England, the Netherlands), CDx tests attract additional (top-up) reimbursement, which is paid in addition to the DRG tariff. For example, in England since 2020, all cancer molecular diagnostic tests (including CDx tests) are on the High Cost Device List and are paid on top of the basic payment mechanism (HRG tariff for elective procedures or global budget for emergency procedures) by NHS England (using the National Genomic Test Directory).
In outpatient settings, CDx tests are generally covered by the same reimbursement framework as other IVD tests. For example, in Germany, CDx tests should be included in the EBM catalog to receive reimbursement within the statutory health insurance system. In Italy, CDx tests are reimbursed using the same reimbursement framework as regular IVD tests, which includes two components: reimbursement of the tests and reimbursement tariff setting at the national level in the Essential Levels of Care (LEA) and introduction of individual tests, which are not yet reimbursed at the national level, at the regional level. In Spain, CDx tests are funded using the same principle as other care (via global budget allocation to hospitals).
In many European countries, the CDx tests do not have specific reimbursement codes; generic codes with broad descriptions of test methods or tumor types are used. For example, in Germany, the CDx tests can be described via generic EBM codes for high-throughput sequencing to analyze genetic alterations in solid malignant neoplasms, which differ depending on the lengths of analyzed nucleic acid molecules (measured in kilobases). The absence of specific codes creates administrative challenges and hinders tracking and funding.
In France, regular reimbursement for CDx tests is available via the NABM Nomenclature, the permanent, main reimbursement catalog for coverage within statutory health insurance, and CCAM Classification of Medical Procedures, used in France for pathology services. There is a limited number of NABM codes specifying the targeted gene and the type of cancer (e.g., EGFR mutation detection test in non-small cell lung cancer for targeted therapy).
In Italy, reimbursement decisions are often made at regional or local levels, resulting in variability in access to CDx tests.
Policy considerations
Due to high cost, CDx tests can be subject to specific policies from payers or national decision-makers for their inclusion in the national lists of reimbursable services in the countries where such frameworks exist.
For example, NHS England maintains the National Genomic Test Directory in England, which covers expensive genomic tests used in rare diseases and cancer, including CDx tests.
In Spain, CDx tests are included in generic terms in the Common Package of Benefits, which defines guaranteed benefits at the national level. In 2024, the Spanish Ministry of Health launched the Common Catalog of Genetic and Genomic Tests of the National Health System, which should guarantee these tests to the population nationwide. The catalog describes tests, including clinical indications, type of genetic study, sample type, type of technique, and studied genes. Individual Autonomous Communities responsible for the organization and provision of healthcare on their territories should align their regional coverage policies with the national catalog.
In Norway, innovative IVD tests, including CDx tests, can obtain payers' coverage decisions within the “New Methods” framework. For example, in August 2024, a favorable coverage decision for molecular gene profile analysis (Oncotype DX®) for predicting the benefit of chemotherapy in patients with ER+, HER2- early-stage invasive breast cancer, who are postmenopausal and lymph node-positive. In this category of patients was published.
Role of HTA
Due to their high cost and novelty, CDx tests are often the subject of HTA in different European countries.
For example, in 2024, seven HTAs of CDx tests were published in Spain, including an assessment of CDx tests in breast, lung, and colorectal cancers.
In the Netherlands, the Dutch Healthcare Institute (Zorginstituut Nederland, ZIN) uses HTA to determine whether services are covered under Basic Health Insurance. In October 2023, the ZIN published the Position “Gene expression testing in women over 50 years and early-stage breast cancer”, which concluded that MammaPrint® and Oncotype DX® can be reimbursed from the basic health insurance package in a small group of women aged 50 and over with early-stage breast cancer, for whom there is doubt whether they will benefit from additional chemotherapy.
While NICE assessments played a certain role in evaluating companion diagnostic tests in the past, they are no longer relevant, as decision-making has been moved to the central level, with NHS England taking the lead.
Role of Innovation Funding
Innovative payment schemes play an important role in market access for IVD tests in Europe: around 52% of the innovative payment schemes can cover CDx. For example, many CDx tests in France are still subject to innovation funding via the List of Innovative Medical Biology Procedures Outside the Nomenclature (LAHN) – the key innovative scheme for IVD tests in France. Funding via the LAHN means an additional budget for laboratories that comes from the research and innovation (MERRI) budget distributed by the Ministry of Health and Access to Care.
In France, there is a government-sponsored Clinical Research Hospital Program dedicated to cancer studies (PHRC-K), including several studies related to the CDx tests: for example, a prospective phase II study of therapeutic de-escalation and evaluation of the miRNA marker M371 for stage IIa-IIb seminomas < 3 cm (EDEN).
Future challenges
Future challenges in the market access landscape for CDx tests include a fragmented reimbursement decision-making process between local or regional levels, leading to inconsistent access; linking reimbursement for CDx tests to the associated drug; insufficient funding when budget allocations for diagnostics are often underprioritized compared to therapies.
How can MTRC help?
Development of reimbursement analysis (procedure coding, payment mechanism, reimbursement tariffs, and policy considerations)
Development of reimbursement strategy
Development of the value dossier
Performing evidence gap analysis for novel technologies
Development of reimbursement and HTA submission dossiers
Adaptation of the global health economic model to EU settings
MTRC has experience with more than 10 projects related to companion diagnostics tests in Europe
Get in touch
Contact us to discuss your needs and learn about our services